Control Accounts and Bank Reconciliation

Emeka Global Ventures operates a dual ledger system and maintains control accounts for its business transactions. For the month of May 2026, the following balances and transactions were extracted from the accounting records:

- Opening credit balance on Purchases Ledger Control Account: $\text{N}245,000$
- Opening debit balance on Purchases Ledger Control Account: $\text{N}3,500$
- Credit purchases for the month: $\text{N}480,000$
- Cash paid to trade creditors: $\text{N}390,000$
- Cheques paid to trade creditors: $\text{N}115,000$
- Returns outwards: $\text{N}18,500$
- Cash discounts received from suppliers: $\text{N}12,000$
- Interest charged by suppliers on overdue accounts: $\text{N}4,200$
- Set-off (contra entry) between sales ledger and purchases ledger: $\text{N}28,000$
- Closing debit balance on Purchases Ledger Control Account at 31st May 2026: $\text{N}2,000$

What is the closing credit balance of the Purchases Ledger Control Account at 31st May 2026 in Naira?

Chidubem Stores operates a dual ledger system and maintains control accounts. On 1st November 2025, the Sales Ledger Control Account had a debit balance of $\text{N}218,500$. During November 2025, the following transactions were recorded:

- Credit sales: $\text{N}340,000$
- Cash and cheques received from debtors: $\text{N}295,000$
- Returns inwards: $\text{N}12,500$
- Discounts allowed: $\text{N}8,000$
- Bad debts written off: $\text{N}6,000$
- Customer dishonoured cheque: $\text{N}15,000$
- Contra entry set-off between sales ledger and purchases ledger: $\text{N}22,000$

What is the closing debit balance of the Sales Ledger Control Account as at 30th November 2025?

The following details were extracted from the accounting records of Kalu Traders for the year ended 31st December 2025:

- Balance b/f (1st Jan 2025): Debit balance $\text{₦}52,000$; Credit balance $\text{₦}1,500$
- Total sales for the year: $\text{₦}210,000$ (including cash sales of $\text{₦}40,000$)
- Returns inwards: $\text{₦}6,500$
- Discount allowed: $\text{₦}3,800$
- Bad debts written off: $\text{₦}2,400$
- Provision for doubtful debts: $\text{₦}3,500$
- Dishonoured cheque from debtor: $\text{₦}4,200$
- Contra set-off with Purchases Ledger: $\text{₦}5,000$
- Cash refund to credit customer for overpayment: $\text{₦}1,800$
- Balance c/f (31st Dec 2025): Debit balance $\text{₦}68,000$; Credit balance $\text{₦}800$

What was the total amount of cash received from credit debtors during the year?

Tunde Enterprises operates control accounts for its dual ledger system. For the year ended 31st December 2026, the following summary of transactions was extracted from the financial records:

- Sales Ledger debit balance at 1st January 2026: $\text{N}320,000$
- Total credit sales: $\text{N}850,000$
- Cash received from trade debtors: $\text{N}710,000$
- Cheques received from debtors dishonoured: $\text{N}15,000$
- Discounts allowed to debtors: $\text{N}25,000$
- Bad debts written off: $\text{N}18,000$
- Returns inwards: $\text{N}22,000$
- Interest charged to customers on overdue accounts: $\text{N}4,000$
- Cash refunded to a customer for overpayment: $\text{N}8,000$
- Contra entry / set-off between Sales Ledger and Purchases Ledger: $\text{N}35,000$
- Increase in provision for doubtful debts: $\text{N}12,000$

What is the closing debit balance of the Sales Ledger Control Account as at 31st December 2026?

Before reconciliation, the Sales Ledger Control Account of Bolanle Stores showed a debit balance of $\text{���}75,000$. It was subsequently discovered that a total of $\text{₦}1,200$ for discount allowed had been completely omitted from the control account. What is the corrected balance of the Sales Ledger Control Account?

On 1st January 2026, Bamidele Enterprises recorded a credit balance of $\text{N}215,000$ in its Purchases Ledger Control Account. During the year ended 31st December 2026, credit purchases amounted to $\text{N}480,000$, payments to trade creditors by bank were $\text{N}410,000$, returns outwards totaled $\text{N}25,000$, and discount received was $\text{N}18,000$. Additionally, a contra entry of $\text{N}32,000$ was agreed to set off accounts between the sales ledger and purchases ledger. What is the closing credit balance of the Purchases Ledger Control Account as at 31st December 2026?

Prior to reconciliation, the Purchases Ledger Control Account of Bisi Stores showed a credit balance of $\text{₦}210,000$. An audit revealed that a purchases journal total of $\text{₦}15,000$ was completely omitted from posting to the Purchases Ledger Control Account. What is the corrected balance of the Purchases Ledger Control Account in Naira?

The Sales Ledger Control Account of Tari Traders showed a debit balance of $\text{₦}145,000$. It was subsequently discovered that a sales returns figure of $\text{₦}3,500$ had been posted to the debit side of the control account instead of the credit side. What is the corrected balance of the Sales Ledger Control Account?

The Purchases Ledger Control Account of Mensah Trading Enterprise showed a credit balance of $\text{₦}145,000$ at the end of the financial year. Upon audit and reconciliation of the control account, the following errors were discovered:

1. A payment of $\text{₦}8,500$ to a supplier was recorded in the cash book but completely omitted from the Purchases Ledger Control Account.
2. Discount received of $\text{₦}1,200$ was mistakenly entered on the credit side of the Purchases Ledger Control Account.
3. Credit purchases of $\text{₦}4,600$ were incorrectly entered in the purchases day book as $\text{₦}6,400$ and posted to the control account.

What is the adjusted credit balance of the Purchases Ledger Control Account?

A business lodged a customer's cheque into its bank account near the end of the month. The transaction was recorded in the Cash Book immediately, but the bank had not credited the account as of the Bank Statement date. How does this uncredited deposit affect the Cash Book balance relative to the Bank Statement balance prior to reconciliation?

On 31st July 2026, the Cash Book of Adebayo Traders showed an overdrawn bank balance of $\text{NGN } 18,500$. A comparison with the Bank Statement revealed the following items:

- Unpresented cheques: $\text{NGN } 6,200$
- Uncredited lodgements: $\text{NGN } 4,100$
- Bank charges not yet entered in the Cash Book: $\text{NGN } 850$
- Direct credit transfer from a customer: $\text{NGN } 3,500$

What is the adjusted Cash Book balance?

Match each cause of discrepancy between the Cash Book and the Bank Statement listed on the left with its correct accounting description on the right.

The following transaction balances were extracted from the books of Bisi & Sons for the month of July 2026:

- Balance on Purchases Ledger Control Account at 1st July 2026 (Credit): $\text{N}24,500$
- Credit purchases for the month: $\text{N}68,000$
- Cash purchases: $\text{N}12,000$
- Discount received from suppliers: $\text{N}1,800$
- Returns outwards: $\text{N}2,400$
- Set-off against Sales Ledger Control Account: $\text{N}3,500$
- Interest charged by suppliers on overdue accounts: $\text{N}600$
- Balance on Purchases Ledger Control Account at 31st July 2026 (Credit): $\text{N}21,400$

What was the total amount paid to trade creditors during the month of July 2026?

A cheque issued by a trading enterprise to a supplier was correctly credited in the Cash Book, but it had not yet been presented to the bank for payment at the reconciliation date. Which of the following best describes this discrepancy item?

On 31st December 2025, the Cash Book of Folake Traders showed an overdraft balance of $\text{₦}14,200$. On comparing the Cash Book with the Bank Statement, the following details were discovered:

- Direct credit transfer by a customer: $\text{₦}6,500$
- Standing order payment for insurance: $\text{₦}2,800$
- Bank charges debited by the bank: $\text{₦}1,500$
- Customer's cheque dishonoured by the bank: $\text{₦}4,000$
- Unpresented cheques: $\text{₦}8,200$
- Uncredited lodgements: $\text{₦}5,400$

What is the correct balance to be shown in the Adjusted Cash Book?

On 30th June 2026, the Cash Book of Adebayo Enterprise showed a bank overdraft balance of $\text{₦}28,400$. Upon comparing the Cash Book with the Bank Statement, the following items were discovered:

- Bank charges of $\text{₦}1,850$ and interest on overdraft of $\text{₦}3,200$ appeared on the bank statement only.
- A customer's cheque for $\text{₦}4,600$ previously deposited was returned dishonoured by the bank, but no entry had been made in the cash book.
- Direct credit from a debtor of $\text{₦}12,500$ and dividend of $\text{₦}5,400$ collected by the bank were credited in the bank statement only.
- Cheques drawn amounting to $\text{₦}15,200$ had not been presented to the bank for payment.
- Cheques received and lodged into the bank amounting to $\text{₦}9,800$ had not been credited by the bank.

What is the adjusted Cash Book balance as at 30th June 2026?

Match each cause of discrepancy between the Cash Book and Bank Statement on the left with its corresponding effect on the unadjusted Cash Book balance relative to the Bank Statement balance on the right.

Match each bank reconciliation item on the left to its correct accounting treatment on the right.

Prior to reconciliation, the Sales Ledger Control Account of Zainab Enterprises showed a debit balance of $\text{₦}420,000$. It was later discovered that a sales return of $\text{₦}18,000$ was erroneously posted to the debit side of the control account, and the discount allowed total of $\text{₦}14,000$ from the cash book was omitted from the control account. What is the correct adjusted balance of the Sales Ledger Control Account?

As at 31st December 2025, the bank statement of Oluwaseun Trading Company showed an overdraft balance of $\text{NGN } 32,400$. An investigation of the financial records revealed the following information:

1. Direct credit transfer by a customer of $\text{NGN } 14,800$ was credited by the bank but not recorded in the cash book.
2. Bank charges of $\text{NGN } 3,200$ and a standing order payment for insurance of $\text{NGN } 5,500$ were reflected only on the bank statement.
3. A cheque of $\text{NGN } 8,900$ received from a customer and deposited was dishonoured by the bank, with no entry yet made in the cash book.
4. A cheque of $\text{NGN } 7,800$ paid to a trade creditor was mistakenly entered in the cash book as $\text{NGN } 8,700$.
5. Unpresented cheques totaled $\text{NGN } 21,500$, while uncredited lodgements amounted to $\text{NGN } 16,300$.

What was the original unadjusted balance per the cash book prior to these discoveries?