Control Accounts Quiz
4 multiple-choice questions with answers and explanations · 1 easy, 3 medium
Sales ledger and purchases ledger control accounts: what goes on each side, contra entries, and reconciling them to the individual balances.
- 1Control Accounts: What Is Their Purpose?The main purpose of a sales ledger control account is:easy
- 2Purchases Ledger Control Account: Which Item Is on the Debit Side?Which of the following appears on the DEBIT side of a purchases ledger (accounts payable) control account?medium
- 3Sales Ledger Control Account: Calculating the Closing BalanceA sales ledger control account has an opening balance of $18,000, credit sales $95,000, receipts from customers $88,000, discounts allowed $2,000, returns inwards $3,000 and bad debts written off $1,000. What is the closing balance?medium
- 4Control Accounts: Recording a Contra (Set-Off) EntryA business buys from and sells to the same company and agrees to set off $500 owed to it against $500 it owes. The entry in the control accounts is:medium