Question Tag: Payables Ledger

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FA – Nov 2024 – L1 – Q2a – Preparation of Partnership Accounts

Prepare receivables and payables control accounts and identify books of prime entry for specific transactions.

Question

At the close of business on 31 July 2023, the following balances were extracted from the books of Akrowa, a limited liability company:

GH¢
Receivables Ledger Control Account
Payables Ledger Control Account

During August 2023, the following transactions occurred:

Transaction	GH¢
1) Cash received from customers	63,600
2) Cash paid to suppliers	65,000
3) Sales on credit	96,400
4) Purchases on credit	73,000
5) Sales returns	3,800
6) Purchase returns	1,400
7) Discounts received from suppliers	800
8) Settlement discount claimed by customer unexpectedly	600
9) Irrecoverable debts written off	5,400
10) Customer and supplier accounts settled by contra	4,200

Required:

i) Prepare the Receivables Ledger Control Account and Payables Ledger Control Account for August 2023 and determine the balances at 31 August 2023.

ii) Identify the book of prime entry from which each of the transactions (1) to (10) originated.

Answer

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Tags: Contra Entries, Control Accounts, Irrecoverable Debts, Payables Ledger, Prime Entry Books, Purchase Returns, Receivables Ledger, Sales Returns
Level: Level 1

Topic: Control accounts and account reconciliations
Series: Nov 2024

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

Question

A Payable Ledger Control Account had a closing balance of N102,000. This included a contra to the sales ledger of N4,800, which had been entered on the wrong side of the control account.

The correct balance on the control account should be:
A. N92,400 credit
B. N98,200 credit
C. N100,800 credit
D. N106,800 credit
E. N111,600 credit

Answer

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Tags: Accounting Errors, Contra Entry, Control Accounts, Payables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2017

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

Question

The following balances were extracted from the books of Judexco Limited on December 31, 2018:

Required:
a. Prepare the receivables ledger control account. (7 Marks)
b. Prepare the purchases ledger control account. (6 Marks)
c. List FOUR uses of control accounts. (4 Marks)
d. Outline SIX accounting errors that cannot be discovered by means of a trial balance. (3 Marks)

Answer

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Tags: Accounting Errors, Control Accounts, Payables Ledger, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

FA – Mar 2023 – L1 – Q2 – Bad and doubtful debt | Control accounts and account reconciliations

Prepares control accounts, allowance for doubtful debts, revaluation account, partners' capital accounts, and adjusted financial position for a partnership.

Question

a) The following were extracted from the books of Pele Ltd by the close of December 2021:

Account	GH¢
Receivables ledger control account	71,400
Payables ledger control account	56,100

During the year 2022 the following transactions occurred:

Transaction	GH¢
Cash received from customers	47,700
Cash paid to suppliers	48,750
Sales on credit	72,300
Purchases on credit	54,750
Sales returns	2,850
Purchase returns	1,050
Discounts received from suppliers	600
Settlement discount claimed by customer	450
Bad debts written off	4,050
Customer and supplier accounts settled by contra	3,150

At 1 January 2022, the start of Pele Ltd’s financial year, the balance on the allowance for doubtful debts account was GH¢9,450. At 31 December 2022, the company’s management decided that the revised balance should be 10% of the year-end accounts receivable.

Required:

i) Prepare the receivables ledger control account and payables ledger control account for the year ended December 2022 and hence determine the balances at 31 December 2022. (7 marks)
ii) Prepare the allowance for doubtful debts account and bad debt expense account showing the necessary entries in respect of the financial year ended 31 December 2022. (3 marks)

b) Molu, Mbisi, and Mabiodun have been in practice under the name Moba Partners for many years sharing profits and losses in the ratio of 4:3:3. Mbisi decided to retire on 31 December 2022 due to her relocation to Spain. The Statement of Financial Position as at 31 December 2022 was as shown below:

Additional Information:

Interest should be charged on partners’ drawings at 5%. Each of the partners had withdrawn GH¢600,000 from the account.
Interest on partner’s capital account to be credited at 6%. Partners’ accounts for the purpose of the interest calculation are to be taken as follows: Molu GH¢2,100,000, Mbisi GH¢1,050,000, Mabiodun GH¢1,500,000.
Mbisi received GH¢240,000 paid by cheque immediately.
Goodwill was valued at GH¢3,000,000 and was to be retained in the books.
Other assets and liabilities were valued as follows:
- Freehold land and buildings: GH¢6,000,000
- Plant and machinery: GH¢2,400,000
- Office equipment: GH¢350,000
- Motor vehicles: GH¢1,560,000
Discount to be received from creditors amounted to GH¢270,000.
20% of the receivables were irrecoverable.
15% of inventory was obsolete.
The balance due to Mbisi is to be kept in the firm as a loan.

Required:

i) Prepare the revaluation account. (2 marks)
ii) Prepare the partners’ capital accounts. (4 marks)
iii) Prepare the adjusted statement of financial position. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Doubtful Debts, Financial Position, Partners' Capital Accounts, Payables Ledger, Receivables Ledger, Revaluation Account
Level: Level 1

Topic: Bad and doubtful debt, Control accounts and account reconciliations
Series: MAR 2023

FA – Nov 2024 – L1 – Q2a – Preparation of Partnership Accounts

Prepare receivables and payables control accounts and identify books of prime entry for specific transactions.

Question

At the close of business on 31 July 2023, the following balances were extracted from the books of Akrowa, a limited liability company:

GH¢
Receivables Ledger Control Account
Payables Ledger Control Account

During August 2023, the following transactions occurred:

Transaction	GH¢
1) Cash received from customers	63,600
2) Cash paid to suppliers	65,000
3) Sales on credit	96,400
4) Purchases on credit	73,000
5) Sales returns	3,800
6) Purchase returns	1,400
7) Discounts received from suppliers	800
8) Settlement discount claimed by customer unexpectedly	600
9) Irrecoverable debts written off	5,400
10) Customer and supplier accounts settled by contra	4,200

Required:

i) Prepare the Receivables Ledger Control Account and Payables Ledger Control Account for August 2023 and determine the balances at 31 August 2023.

ii) Identify the book of prime entry from which each of the transactions (1) to (10) originated.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contra Entries, Control Accounts, Irrecoverable Debts, Payables Ledger, Prime Entry Books, Purchase Returns, Receivables Ledger, Sales Returns
Level: Level 1

Topic: Control accounts and account reconciliations
Series: Nov 2024

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

Question

A Payable Ledger Control Account had a closing balance of N102,000. This included a contra to the sales ledger of N4,800, which had been entered on the wrong side of the control account.

The correct balance on the control account should be:
A. N92,400 credit
B. N98,200 credit
C. N100,800 credit
D. N106,800 credit
E. N111,600 credit

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Contra Entry, Control Accounts, Payables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAY 2017

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Errors, Control Accounts, Payables Ledger, Receivables Ledger
Level: Level 1

Topic: Control Accounts
Series: MAR/JULY 2020

FA – Mar 2023 – L1 – Q2 – Bad and doubtful debt | Control accounts and account reconciliations

Prepares control accounts, allowance for doubtful debts, revaluation account, partners' capital accounts, and adjusted financial position for a partnership.

Question

a) The following were extracted from the books of Pele Ltd by the close of December 2021:

Account	GH¢
Receivables ledger control account	71,400
Payables ledger control account	56,100

During the year 2022 the following transactions occurred:

Transaction	GH¢
Cash received from customers	47,700
Cash paid to suppliers	48,750
Sales on credit	72,300
Purchases on credit	54,750
Sales returns	2,850
Purchase returns	1,050
Discounts received from suppliers	600
Settlement discount claimed by customer	450
Bad debts written off	4,050
Customer and supplier accounts settled by contra	3,150

Required:

Additional Information:

Interest should be charged on partners’ drawings at 5%. Each of the partners had withdrawn GH¢600,000 from the account.
Interest on partner’s capital account to be credited at 6%. Partners’ accounts for the purpose of the interest calculation are to be taken as follows: Molu GH¢2,100,000, Mbisi GH¢1,050,000, Mabiodun GH¢1,500,000.
Mbisi received GH¢240,000 paid by cheque immediately.
Goodwill was valued at GH¢3,000,000 and was to be retained in the books.
Other assets and liabilities were valued as follows:
- Freehold land and buildings: GH¢6,000,000
- Plant and machinery: GH¢2,400,000
- Office equipment: GH¢350,000
- Motor vehicles: GH¢1,560,000
Discount to be received from creditors amounted to GH¢270,000.
20% of the receivables were irrecoverable.
15% of inventory was obsolete.
The balance due to Mbisi is to be kept in the firm as a loan.

Required:

i) Prepare the revaluation account. (2 marks)
ii) Prepare the partners’ capital accounts. (4 marks)
iii) Prepare the adjusted statement of financial position. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Doubtful Debts, Financial Position, Partners' Capital Accounts, Payables Ledger, Receivables Ledger, Revaluation Account
Level: Level 1

Topic: Bad and doubtful debt, Control accounts and account reconciliations
Series: MAR 2023

Question Tag: Payables Ledger

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FA – Nov 2024 – L1 – Q2a – Preparation of Partnership Accounts

Prepare receivables and payables control accounts and identify books of prime entry for specific transactions.

During August 2023, the following transactions occurred:

Required:

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

FA – Mar 2023 – L1 – Q2 – Bad and doubtful debt | Control accounts and account reconciliations

Prepares control accounts, allowance for doubtful debts, revaluation account, partners' capital accounts, and adjusted financial position for a partnership.

FA – Nov 2024 – L1 – Q2a – Preparation of Partnership Accounts

Prepare receivables and payables control accounts and identify books of prime entry for specific transactions.

During August 2023, the following transactions occurred:

Required:

FA – May 2017 – L1 – SA – Q11 – Control Accounts

Involves adjusting a Payable Ledger Control Account balance after a contra entry was wrongly entered.

FA – Mar/July 2020 – L1 – SB – Q5 – Control Accounts

Preparation of receivables and payables ledger control accounts, uses of control accounts, and accounting errors not detectable by trial balance.

FA – Mar 2023 – L1 – Q2 – Bad and doubtful debt | Control accounts and account reconciliations

Prepares control accounts, allowance for doubtful debts, revaluation account, partners' capital accounts, and adjusted financial position for a partnership.

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