Control Accounts and Bank Reconciliation Alıştırma Soruları — JAMB UTME — Sayfa 2

Soru 21Soru →

Kolawole Traders maintains control accounts for its ledgers. On 31st December 2025, the balance on the Sales Ledger Control Account before adjustments was $\text{N}185,000$ (debit). A contra entry of $\text{N}14,000$ is to be set off between a customer's account in the sales ledger and their creditor account in the purchases ledger. What is the revised balance of the Sales Ledger Control Account after posting this set-off?

\text{N}171,000

debit

\text{N}199,000

debit

\text{N}171,000

credit

\text{N}199,000

credit

Cevabı ve açıklamayı göster

Cevap: $\text{N}171,000$ debit

Cevap

\text{N}171,000

debit

A contra entry (set-off) reduces both trade debtors and trade creditors. To record a set-off in the control accounts, the Sales Ledger Control Account is credited and the Purchases Ledger Control Account is debited. Deducting the

\text{N}14,000

credit set-off from the opening debit balance of

\text{N}185,000

results in a revised balance of

\text{N}171,000

debit.

Adım Adım Çözüm

1

Determine the double entry rule for a contra entry between control accounts

Debit Purchases Ledger Control Account and Credit Sales Ledger Control Account by

\text{N}14,000

.

A set-off reduces total debtors and total creditors simultaneously. Therefore, the Sales Ledger Control Account must be credited.

2

Calculate the adjusted balance on the Sales Ledger Control Account

\text{N}185,000 \text{ (debit)} - \text{N}14,000 \text{ (credit)} = \text{N}171,000 \text{ (debit)}

Crediting a debit-balance account reduces the balance.

Anahtar Kavram

Accounting treatment of contra entries in control accounts

Tahmini Süre:1m 30s

Soru 22Soru →

Adeola Traders operates a dual ledger system. On 1st July 2025, the debit balance of the Sales Ledger Control Account was $\text{N}145,000$ . During July, credit sales amounted to $\text{N}82,000$ , cash collected from debtors was $\text{N}94,000$ , discount allowed was $\text{N}4,000$ , and bad debts written off totaled $\text{N}3,000$ . A contra entry of $\text{N}16,500$ was set off between the sales ledger and purchases ledger. What is the closing debit balance of the Sales Ledger Control Account at the end of July 2025?

Cevabı ve açıklamayı göster

Cevap: 109500

Cevap

109,500 Naira

Contra entries represent mutual set-offs between customer and supplier accounts. In the Sales Ledger Control Account, a contra entry is credited because it reduces the overall indebtedness of customers. Therefore, subtracting cash received, discounts allowed, bad debts, and the contra entry from total debits (opening balance plus credit sales) yields a closing debit balance of 109,500 Naira.

Adım Adım Çözüm

1

Sum all debit entries in the Sales Ledger Control Account

Total Debits =

\text{N}145,000 + \text{N}82,000 = \text{N}227,000

Opening debit balance and credit sales increase the total receivables balance.

2

Sum all credit entries, including the contra set-off

Total Credits =

\text{N}94,000 + \text{N}4,000 + \text{N}3,000 + \text{N}16,500 = \text{N}117,500

Cash receipts, discounts allowed, bad debts written off, and contra entries reduce the debt owed by debtors.

3

Calculate the closing debit balance

Closing Balance =

\text{N}227,000 - \text{N}117,500 = \text{N}109,500

Subtracting total credits from total debits yields the net remaining debit balance.

Anahtar Kavram

Treatment of Contra Entries in Sales Ledger Control Account

Soru 23Soru →

The Sales Ledger Control Account of Chidubem Trading Enterprise showed a debit balance of $\text{₦}320,000$ before ledger reconciliation. An investigation of the accounting records revealed the following errors:
1. Sales returns journal total of $\text{₦}8,500$ was debited to the Sales Ledger Control Account.
2. Discount allowed amounting to $\text{₦}4,500$ was omitted entirely from the Sales Ledger Control Account.
3. A credit sale of $\text{₦}12,000$ was posted to the credit side of the Sales Ledger Control Account.

What is the corrected balance of the Sales Ledger Control Account after making the necessary adjustments?

₦322,500

₦336,000

₦331,500

₦319,000

Cevabı ve açıklamayı göster

Cevap: ₦322,500

Cevap

₦322,500

The unadjusted debit balance of ₦320,000 must be adjusted for all three errors. Sales returns debited instead of credited require a credit adjustment of

2 \times \text{₦}8,500 = \text{₦}17,000

. Omitted discount allowed requires a credit adjustment of ₦4,500. A credit sale credited instead of debited requires a debit adjustment of

2 \times \text{₦}12,000 = \text{₦}24,000

. Performing the net calculation:

\text{₦}320,000 - \text{₦}17,000 - \text{₦}4,500 + \text{₦}24,000 = \text{₦}322,500

.

Adım Adım Çözüm

1

Calculate the adjustment for misplaced sales returns.

Credit adjustment of ₦17,000

Sales returns reduce debtors (credit side). Debiting ₦8,500 requires a credit of ₦17,000 (₦8,500 to cancel the error plus ₦8,500 for correct entry).

2

Calculate the adjustment for omitted discount allowed.

Credit adjustment of ₦4,500

Discount allowed reduces total debtors and must be credited to the Sales Ledger Control Account.

3

Calculate the adjustment for misplaced credit sale.

Debit adjustment of ₦24,000

Credit sales increase debtors (debit side). Crediting ₦12,000 requires a debit of ₦24,000 (₦12,000 to cancel the error plus ₦12,000 for correct entry).

4

Compute the corrected balance.

₦320,000 - ₦17,000 - ₦4,500 + ₦24,000 = ₦322,500

Apply all debit and credit corrections to the unadjusted debit balance.

Anahtar Kavram

Sales Ledger Control Account Error Correction

Soru 24Soru →

Prior to reconciliation, the Sales Ledger Control Account of Folake Enterprises showed a debit balance of ₦540,000 on 31 December 2025. Upon auditing the books, the following errors were discovered:

1. The sales journal total was understated by ��9,000.
2. A customer's dishonoured cheque of ₦14,000 recorded in the cash book was not posted to the control account.
3. A contra set-off of ₦6,000 between the sales and purchases ledgers was omitted from the control account.
4. Total discount allowed of ₦3,500 was wrongly posted to the debit side of the control account.

What is the correct adjusted balance of the Sales Ledger Control Account?

Cevabı ve açıklamayı göster

Cevap: 550000

Cevap

The correct adjusted balance of the Sales Ledger Control Account is ₦550,000.

The unadjusted debit balance of ₦540,000 is increased by ₦9,000 for understated sales and ₦14,000 for the dishonoured cheque, and decreased by ₦6,000 for the omitted contra entry and ₦7,000 for correcting the misposted discount allowed (deducting ₦3,500 to reverse the wrong debit and ₦3,500 to credit it properly). This yields an adjusted debit balance of ₦550,000.

Adım Adım Çözüm

1

Identify initial balance and direction

Unadjusted debit balance = ₦540,000

The Sales Ledger Control Account normally carries a debit balance representing total trade debtors.

2

Adjust for understated sales journal total

Add ₦9,000 to debit balance

Understating sales means total debtors were understated; increasing sales increases the control account debit.

3

Adjust for dishonoured cheque

Add ₦14,000 to debit balance

A dishonoured cheque reinstates the debtor's debt, requiring a debit entry in the Sales Ledger Control Account.

4

Adjust for omitted contra entry

Deduct ₦6,000 from debit balance

Contra set-offs reduce amounts owed by debtors against amounts owed to them as creditors, requiring a credit entry.

5

Correct misposted discount allowed

Deduct ₦7,000 from debit balance

Discount allowed reduces debtors (credit side). Debiting ₦3,500 requires a credit adjustment of ₦7,000 (₦3,500 to cancel the error plus ₦3,500 for the correct posting).

6

Compute total adjusted balance

540,000 + 9,000 + 14,000 - 6,000 - 7,000 = ₦550,000

Summing all debit additions and credit deductions yields the true adjusted control balance.

Anahtar Kavram

Adjustment of Sales Ledger Control Account for Errors and Omissions

Soru 25Soru →

At the end of April 2026, the Cash Book of Koko Traders showed a debit bank balance of $\text{NGN } 38,200$ , whereas the Bank Statement reflected a credit balance of $\text{NGN } 45,000$ . A detailed examination revealed the following discrepancies:
- A direct credit by a customer of $\text{NGN } 9,500$ was recorded on the Bank Statement only.
- Bank charges of $\text{NGN } 1,200$ were debited by the bank only.
- Cheques issued to suppliers amounting to $\text{NGN } 14,000$ had not yet been presented for payment.

What is the total value of uncredited lodgements at the end of April 2026?

NGN 7,200

NGN 12,500

NGN 15,500

NGN 21,500

Cevabı ve açıklamayı göster

Cevap: NGN 15,500

Cevap

The total value of uncredited lodgements is NGN 15,500.

To find the uncredited lodgements, first update the Cash Book balance for items recorded only on the Bank Statement:

\text{NGN } 38,200 + \text{NGN } 9,500 - \text{NGN } 1,200 = \text{NGN } 46,500

. Then apply the reconciliation relationship:

\text{Adjusted Cash Book Balance} + \text{Unpresented Cheques} - \text{Uncredited Lodgements} = \text{Bank Statement Balance}

. Substituting the given figures gives

\text{NGN } 46,500 + \text{NGN } 14,000 - \text{Uncredited Lodgements} = \text{NGN } 45,000

, which solves to

\text{NGN } 15,500

.

Adım Adım Çözüm

1

Calculate the Adjusted Cash Book Balance

Adjusted Cash Book Balance =

\text{NGN } 46,500

Unrecorded items in the Cash Book must be adjusted first: Debit balance (

\text{NGN } 38,200

) + Direct credit (

\text{NGN } 9,500

) - Bank charges (

\text{NGN } 1,200

) =

\text{NGN } 46,500

.

2

Set up the Bank Reconciliation Statement equation

\text{Adjusted Cash Book} + \text{Unpresented Cheques} - \text{Uncredited Lodgements} = \text{Bank Statement Balance}

Unpresented cheques increase the bank balance relative to the cash book, while uncredited lodgements decrease it.

3

Solve for Uncredited Lodgements

Uncredited Lodgements =

\text{NGN } 15,500

Substitute known values:

46,500 + 14,000 - L = 45,000 \implies 60,500 - L = 45,000 \implies L = 60,500 - 45,000 = 15,500

.

Anahtar Kavram

Calculation of missing bank reconciliation items via Adjusted Cash Book

Soru 26Soru →

On 30th June 2026, the Cash Book bank column of Emeka Enterprises showed a debit balance of $\text{NGN } 45,000$ . Upon comparison with the Bank Statement, the following items causing discrepancies were identified:

- Direct credit for dividends received directly by the bank: $\text{NGN } 2,500$
- Bank charges not yet recorded in the Cash Book: $\text{NGN } 1,200$
- Standing order payment for insurance: $\text{NGN } 3,000$
- Unpresented cheques: $\text{NGN } 8,500$
- Uncredited lodgements: $\text{NGN } 5,400$

What is the adjusted Cash Book balance in NGN prior to preparing the Bank Reconciliation Statement?

Cevabı ve açıklamayı göster

Cevap: 43300

Cevap

The adjusted Cash Book balance is NGN 43,300.

The adjusted Cash Book balance is calculated by taking the initial Cash Book debit balance of

\text{NGN } 45,000

, adding unrecorded direct credits (dividends of

\text{NGN } 2,500

), and deducting unrecorded bank payments/charges (bank charges of

\text{NGN } 1,200

and standing order of

\text{NGN } 3,000

), giving

\text{NGN } 43,300

. Unpresented cheques and uncredited lodgements do not adjust the Cash Book because they are already present in the Cash Book.

Adım Adım Çözüm

1

Categorize the discrepancy items based on accounting treatment.

Direct credit (

\text{NGN } 2,500

), bank charges (

\text{NGN } 1,200

), and standing order (

\text{NGN } 3,000

) require entries in the Cash Book. Unpresented cheques and uncredited lodgements are timing differences handled in the reconciliation statement.

The Cash Book must first be updated for items that the bank has processed but the enterprise has not yet entered.

2

Calculate the updated Cash Book balance.

\text{NGN } 45,000 + \text{NGN } 2,500 - \text{NGN } 1,200 - \text{NGN } 3,000 = \text{NGN } 43,300

.

Direct receipts increase the debit balance, whereas unrecorded payments and fees decrease it.

Anahtar Kavram

Distinguishing Cash Book adjustment items (unrecorded bank transactions) from Bank Reconciliation Statement items (unpresented cheques and uncredited deposits).

Soru 27Soru →

The Cash Book balance of Kalu Traders on 31st December 2025 showed a debit balance of ₦45,000. Upon comparing the Cash Book with the Bank Statement, the following items were identified:

- Bank charges not entered in Cash Book: ₦1,500
- Standing order payment for insurance: ₦2,000
- Credit transfer (direct deposit) by a customer: ₦6,000
- Unpresented cheques: ₦12,000
- Uncredited lodgements: ₦8,500

What is the adjusted cash book balance?

��47,500 debit balance

₦51,000 debit balance

₦42,500 debit balance

₦44,000 debit balance

Cevabı ve açıklamayı göster

Cevap: ��47,500 debit balance

Cevap

₦47,500 debit balance

To arrive at the adjusted cash book balance, start with the unadjusted debit balance of ₦45,000, add the credit transfer of ₦6,000 received directly into the bank, and subtract bank charges of ₦1,500 and the standing order payment of ₦2,000. This yields a net corrected debit balance of ₦47,500. Unpresented cheques and uncredited lodgements are timing differences between the bank statement and cash book, so they must be excluded from cash book adjustments.

Adım Adım Çözüm

1

Identify items that require adjustment in the Cash Book

Items to include: Bank charges (₦1,500), Standing order (₦2,000), Credit transfer (₦6,000). Exclude timing differences: Unpresented cheques and Uncredited lodgements.

Only items omitted from the cash book or errors made within it are adjusted in the cash book. Timing differences are handled strictly in the bank reconciliation statement.

2

Apply debit and credit entries to the initial Cash Book balance

Add direct deposit: ₦45,000 + ₦6,000 = ₦51,000; Deduct bank charges and standing order: ₦51,000 - ₦1,500 - ₦2,000 = ₦47,500.

Direct deposits increase the cash book balance (debit), while bank charges and standing order payments decrease the cash book balance (credit).

Anahtar Kavram

Adjusted Cash Book Preparation

Soru 28Soru →

The bank statement of Adebayo Stores showed an overdraft balance of $\text{NGN } 18,500$ as at 31st March 2026. On examination of the accounting records, it was discovered that unpresented cheques amounted to $\text{NGN } 6,200$ , while uncredited lodgements were $\text{NGN } 4,800$ . What is the balance as per the cash book?

Overdraft of

\text{NGN } 19,900

Overdraft of

\text{NGN } 17,100

Overdraft of

\text{NGN } 24,700

Overdraft of

\text{NGN } 7,500

Cevabı ve açıklamayı göster

Cevap: Overdraft of $\text{NGN } 19,900$

Cevap

Overdraft of

\text{NGN } 19,900

To reconcile from the Bank Statement Overdraft of

\text{NGN } 18,500

to the Cash Book balance, we add uncredited lodgements (

\text{NGN } 4,800

) and deduct unpresented cheques (

\text{NGN } 6,200

). This calculation yields

-\text{NGN } 18,500 + \text{NGN } 4,800 - \text{NGN } 6,200 = -\text{NGN } 19,900

, representing an overdraft of

\text{NGN } 19,900

.

Adım Adım Çözüm

1

Identify the starting position

Bank Statement Overdraft balance =

-\text{NGN } 18,500

An overdraft is a negative/debit bank balance.

2

Add uncredited lodgements to the bank statement overdraft balance

-\text{NGN } 18,500 + \text{NGN } 4,800 = -\text{NGN } 13,700

Uncredited lodgements have been entered on the debit side of the cash book but not yet credited by the bank, so they reduce the bank overdraft when arriving at the cash book balance.

3

Subtract unpresented cheques from the subtotal

-\text{NGN } 13,700 - \text{NGN } 6,200 = -\text{NGN } 19,900

Unpresented cheques have been credited in the cash book but not yet debited by the bank, so deducting them yields the cash book overdraft balance.

Anahtar Kavram

Reconciliation of Bank Statement Overdraft to Cash Book Balance

Soru 29Soru →

On 30th June 2026, the adjusted cash book of Emeka Enterprises showed a debit balance of $\text{NGN } 45,000$ . A comparison with the bank statement revealed unpresented cheques totaling $\text{NGN } 12,500$ and uncredited lodgements of $\text{NGN } 8,200$ . What is the balance as per the bank statement as at 30th June 2026?

Cevabı ve açıklamayı göster

Cevap: 49300

Cevap

The balance as per the bank statement as at 30th June 2026 is NGN 49,300.

Starting from a favourable (debit) adjusted cash book balance of NGN 45,000, unpresented cheques (NGN 12,500) are added because they represent payments recorded in the cash book that have not yet been processed by the bank. Uncredited lodgements (NGN 8,200) are subtracted because they represent deposits recorded in the cash book that have not yet been credited by the bank. This gives a final bank statement credit balance of NGN 49,300.

Adım Adım Çözüm

1

Identify starting balance from the adjusted cash book

Adjusted Cash Book balance (Debit) = NGN 45,000

Reconciliation starts from the corrected cash book figure to arrive at the bank statement balance.

2

Add unpresented cheques

45,000 + 12,500 = NGN 57,500

Unpresented cheques have been debited/subtracted in the cash book but not yet cleared by the bank, so the bank balance is higher by this amount.

3

Deduct uncredited lodgements

57,500 - 8,200 = NGN 49,300

Uncredited lodgements have been added in the cash book but not yet credited on the bank statement, so the bank balance is lower by this amount.

Anahtar Kavram

Reconciling the Adjusted Cash Book Balance to the Bank Statement Balance

Soru 30Soru →

The adjusted cash book of Tunde & Sons shows a debit balance of $\text{NGN } 12,000$ . Cheques issued to suppliers totaling $\text{NGN } 3,500$ have not yet been presented to the bank for payment. What is the balance as per the bank statement?

\text{NGN } 15,500

\text{NGN } 8,500

\text{NGN } 12,000

\text{NGN } 19,000

Cevabı ve açıklamayı göster

Cevap: $\text{NGN } 15,500$

Cevap

\text{NGN } 15,500

Starting with a favourable (debit) adjusted cash book balance, unpresented cheques must be added to determine the bank statement balance because these cheques have reduced the cash book balance but have not yet been deducted from the bank account.

Adım Adım Çözüm

1

Identify the starting adjusted cash book balance.

Adjusted Cash Book debit balance =

\text{NGN } 12,000

.

The reconciliation statement starts from the corrected cash book figure.

2

Add unpresented cheques to the adjusted cash book balance.

\text{NGN } 12,000 + \text{NGN } 3,500 = \text{NGN } 15,500

.

Unpresented cheques have been deducted in the cash book but not yet cleared by the bank, meaning the bank's record reflects a higher balance.

Anahtar Kavram

Preparation of Bank Reconciliation Statement from Adjusted Cash Book Balance

Soru 31Soru →

At the end of a trading period, an enterprise compiled the following summary of credit transactions with its customers:

- Debtors balance at start: $₦45,000$
- Credit sales for the period: $₦120,000$
- Total receipts from debtors (cash and cheques): $₦113,000$
- Customer's cheque dishonoured: $₦4,000$
- Cash discount allowed to debtors: $₦3,500$
- Goods returned by credit customers: $₦2,500$
- Irrecoverable debts written off: $₦1,500$
- Set-off against purchases ledger: $₦2,000$
- Provision for doubtful debts created: $₦5,000$

What is the closing debit balance of the Sales Ledger Control Account?

₦47,000

₦42,000

₦39,000

₦54,000

Cevabı ve açıklamayı göster

Cevap: ₦47,000

Cevap

The closing debit balance of the Sales Ledger Control Account is ₦47,000.

To find the closing balance of the Sales Ledger Control Account, total the debit entries (Opening Balance

₦45,000

+ Credit Sales

₦120,000

+ Dishonoured Cheque

₦4,000

=

₦169,000

) and subtract all valid credit entries (Receipts

₦113,000

+ Discount Allowed

₦3,500

+ Sales Returns

₦2,500

+ Bad Debts

₦1,500

+ Contra Set-off

₦2,000

=

₦122,000

). This leaves a closing debit balance of

₦47,000

. Note that Provision for Doubtful Debts is never entered into control accounts.

Adım Adım Çözüm

1

Calculate total debit side entries of the Sales Ledger Control Account

Total Debits =

₦45,000 + ₦120,000 + ₦4,000 = ₦169,000

Opening debtors balance, credit sales, and dishonoured cheques increase the debt owed by credit customers and are debited to the account.

2

Calculate total credit side entries of the Sales Ledger Control Account

Total Credits =

₦113,000 + ₦3,500 + ₦2,500 + ₦1,500 + ₦2,000 = ₦122,000

Receipts from debtors, discount allowed, sales returns, bad debts written off, and set-offs reduce customer indebtedness and are credited to the account.

3

Identify items to be excluded from the Sales Ledger Control Account

Exclude Provision for Doubtful Debts (

₦5,000

)

Provisions for doubtful debts are recorded in the general ledger provision account, not in individual customer personal accounts or control accounts.

4

Determine the closing debit balance (Balance c/d)

Closing Balance =

₦169,000 - ₦122,000 = ₦47,000

The closing debit balance is the excess of total debit entries over total credit entries.

Anahtar Kavram

Sales Ledger Control Account preparation and item classification

Tahmini Süre:1m 30s

Soru 32Soru →

In the preparation of a Sales Ledger Control Account, on which side of the account should the total discount allowed to credit customers be recorded?

Credit side

Debit side

Excluded entirely from the control account

Debit side of the Purchases Ledger Control Account

Cevabı ve açıklamayı göster

Cevap: Credit side

Cevap

Credit side

The Sales Ledger Control Account summarizes total trade debtors (an asset). Because discount allowed reduces the total amount owed by debtors, it is credited to the Sales Ledger Control Account.

Adım Adım Çözüm

1

Identify how discount allowed affects customer debt

Discount allowed reduces the total amount owed by credit debtors to the business.

When customers pay early and receive a discount, their remaining liability decreases.

2

Determine the correct posting side in the Sales Ledger Control Account

Items that decrease total debtor balances are posted to the credit side.

The Sales Ledger Control Account carries a normal debit balance, so decreases in asset value are credited.

Anahtar Kavram

Rules of entry in the Sales Ledger Control Account

Tahmini Süre:45s

Soru 33Soru →

Match each transaction or item related to the Sales Ledger Control Account on the left with its correct accounting entry side and effect on the right.

Soldaki öğeye tıklayın, sonra eşleşen sağdaki öğeye tıklayın

Cevabı ve açıklamayı göster

Cevap

Credit sales are debited to increase trade debtors; Dishonoured cheques are debited to reinstate customer debts; Discount allowed is credited to record reductions for prompt payment; Bad debts written off are credited as irrecoverable debt reductions.

In the Sales Ledger Control Account, items that increase receivables (such as credit sales and dishonoured cheques) are debited. Items that decrease receivables (such as discount allowed, cash received, set-offs, and bad debts written off) are credited.

Adım Adım Çözüm

1

Identify the nature of the Sales Ledger Control Account.

The Sales Ledger Control Account acts as an asset account representing total trade debtors (receivables), having a normal debit balance.

Understanding the account type establishes that increases in debtors are debited and decreases are credited.

2

Analyze debit entries (items that increase or reinstate trade debtors).

Credit sales increase debtors balance (debited). Dishonoured cheques reverse a prior payment credit, restoring the debt (debited).

Transactions adding to the claim on customers belong on the debit side.

3

Analyze credit entries (items that reduce trade debtors).

Discount allowed reduces the debt owed upon settlement (credited). Bad debts written off permanently remove uncollectible debt from receivables (credited).

Transactions reducing the claim on customers belong on the credit side.

Anahtar Kavram

Classification of entries in the Sales Ledger Control Account

Tahmini Süre:1m 0s

Soru 34Soru →

Below is a list of accounting transactions on the left and their respective posting rules in the Purchases Ledger Control Account on the right. Match each transaction item with its correct entry placement and double-entry accounting effect.

Soldaki öğeye tıklayın, sonra eşleşen sağdaki öğeye tıklayın

Cevabı ve açıklamayı göster

Cevap

Interest charged on overdue accounts matches with being credited to increase trade payables; Returns outwards match with being debited to reduce trade payables; Contra set-off matches with being debited to offset accounts receivable balance; Dishonoured cheque matches with being credited to reinstate creditor liability.

Each accounting item is paired according to its double-entry effect on total creditors. Items increasing liabilities (interest charged, dishonoured cheques) are placed on the credit side, while items decreasing liabilities (returns outwards, contra set-offs) are placed on the debit side.

Adım Adım Çözüm

1

Identify the nature of the Purchases Ledger Control Account.

The control account summarizes the liability owed to trade payables (creditors), where credit entries increase liability and debit entries decrease liability.

Control accounts operate on double-entry principles maintaining total creditor obligations.

2

Classify transactions that increase creditor balances.

Interest charged on overdue accounts and dishonoured cheques increase supplier liabilities, requiring credit entries.

Interest adds penalty charges to payable balances, and dishonoured cheques cancel previous payment reductions.

3

Classify transactions that decrease creditor balances.

Returns outwards and contra set-offs decrease supplier liabilities, requiring debit entries.

Returning goods lowers invoice liabilities, while contra set-offs cancel matching receivable/payable claims.

Anahtar Kavram

Purchases Ledger Control Account Posting Rules

Soru 35Soru →

An enterprise extracted the following balance details regarding its trade creditors for the month of June 2026:

- Opening credit balance: $\text{N}14,500$
- Opening debit balance: $\text{N}350$
- Total credit purchases: $\text{N}86,200$
- Cash purchases of merchandise: $\text{N}12,000$
- Purchase of office equipment on credit: $\text{N}5,000$
- Returns outwards: $\text{N}3,400$
- Cheques paid to trade creditors: $\text{N}71,800$
- Discounts received from suppliers: $\text{N}2,100$
- Set-off contra entry with sales ledger: $\text{N}1,500$
- Closing debit balance: $\text{N}200$

What is the closing credit balance of the Purchases Ledger Control Account at the end of June 2026?

\text{N}21,750

\text{N}26,750

\text{N}25,950

\text{N}33,750

Cevabı ve açıklamayı göster

Cevap: \text{N}21,750

Cevap

\text{N}21,750

The correct closing credit balance is

\text{N}21,750

. This is determined by taking total credits of

\text{N}100,900

(opening credit balance

\text{N}14,500

+ credit purchases

\text{N}86,200

+ closing debit balance

\text{N}200

) and subtracting total debit entries of

\text{N}79,150

(opening debit balance

\text{N}350

+ payments

\text{N}71,800

+ returns outwards

\text{N}3,400

+ discounts received

\text{N}2,100

+ contra set-off

\text{N}1,500

). Cash purchases and capital asset purchases are correctly excluded.

Adım Adım Çözüm

1

Filter out irrelevant non-trade items

Cash purchases (

\text{N}12,000

) are excluded because cash transactions do not affect trade creditors. Credit purchase of office equipment (

\text{N}5,000

) is excluded because non-current asset purchases are recorded in the general journal and non-current asset ledger, not the purchases ledger.

The Purchases Ledger Control Account exclusively records transactions involving trade creditors for goods bought for resale on credit.

2

Sum all entries on the credit side of the account

\text{Credit Total} = \text{Opening Credit Balance} (\text{N}14,500) + \text{Credit Purchases} (\text{N}86,200) + \text{Closing Debit Balance} (\text{N}200) = \text{N}100,900

Credit entries increase trade creditor liability or represent carried forward debit balances.

3

Sum all known debit entries

\text{Debit Entries} = \text{Opening Debit Balance} (\text{N}350) + \text{Cheques Paid} (\text{N}71,800) + \text{Returns Outwards} (\text{N}3,400) + \text{Discounts Received} (\text{N}2,100) + \text{Contra Set-off} (\text{N}1,500) = \text{N}79,150

Debit entries reduce liability to trade creditors.

4

Calculate the missing closing credit balance (carried forward to debit side to balance)

\text{Closing Credit Balance} = \text{N}100,900 - \text{N}79,150 = \text{N}21,750

The balance balancing the control account represents the net remaining liability owed to trade creditors.

Anahtar Kavram

Purchases Ledger Control Account Balancing

Soru 36Soru →

The following transactions and balances were extracted from the accounting records of Folake Enterprises for the financial year ended 31st December 2025:

Transaction / Balance Item	Amount (₦)
Opening balance (1st Jan 2025): Debit	45,000
Opening balance (1st Jan 2025): Credit	1,200
Total sales (including cash sales of ₦65,000)	280,000
Cash received from credit customers	178,000
Cheques received from credit customers	24,000
Discount allowed	4,500
Returns inwards	6,800
Bad debts written off	3,200
Dishonoured cheques from customers	2,500
Cash refunds to credit customers for overpayment	1,800
Contra entry set-off with Purchases Ledger	5,400
Provision for doubtful debts	2,000
Discount received	1,500
Closing balance (31st Dec 2025): Credit	800

What is the debit balance carried down of the Sales Ledger Control Account at 31st December 2025?

Cevabı ve açıklamayı göster

Cevap: 42000

Cevap

The debit balance carried down of the Sales Ledger Control Account at 31st December 2025 is ₦42,000.

To calculate the closing debit balance carried down, first compute credit sales by deducting cash sales (₦65,000) from total sales (₦280,000), giving ₦215,000. Next, assemble the debit side entries: Opening debit balance (₦45,000), Credit sales (₦215,000), Dishonoured cheques (₦2,500), Cash refunds (₦1,800), and the Closing credit balance c/d (₦800), which total ₦265,100. Then assemble the credit side entries: Opening credit balance (₦1,200), Cash received (₦178,000), Cheques received (₦24,000), Discount allowed (₦4,500), Returns inwards (₦6,800), Bad debts written off (₦3,200), and Contra set-off (₦5,400), totaling ₦223,100. Subtracting ₦223,100 from ₦265,100 yields the correct closing debit balance of ₦42,000. Note that provision for doubtful debts (₦2,000) and discount received (₦1,500) are non-control account items and must be completely ignored.

Adım Adım Çözüm

1

Isolate credit sales from total sales

Credit Sales = ₦280,000 - ₦65,000 = ₦215,000

Only credit sales increase trade debtors and are entered in the Sales Ledger Control Account. Cash sales are entered in the cash book.

2

Filter out non-relevant transactions

Ignore Provision for Doubtful Debts (₦2,000) and Discount Received (₦1,500)

Provision for doubtful debts is not posted to control accounts, and discount received affects creditors in the Purchases Ledger Control Account.

3

Sum all debit side items including closing credit balance

Total Debit Side = ₦45,000 + ₦215,000 + ₦2,500 + ₦1,800 + ₦800 = ₦265,100

Opening debit balance, credit sales, dishonoured cheques, cash refunds to customers, and closing credit balance increase the debit total.

4

Sum all credit side items prior to balancing

Total Credit Side = ₦1,200 + ₦178,000 + ₦24,000 + ₦4,500 + ₦6,800 + ₦3,200 + ₦5,400 = ₦223,100

Opening credit balance, cash/cheques received, discounts allowed, returns inwards, bad debts, and set-offs reduce customer indebtedness.

5

Calculate the closing debit balance carried down

Debit Balance c/d = ₦265,100 - ₦223,100 = ₦42,000

The difference between total debit entries and total credit entries gives the closing debit balance.

Anahtar Kavram

Reconstruction of Sales Ledger Control Account with extraneous items

Tahmini Süre:2m 0s

Soru 37Soru →

The following transaction balances were extracted from the books of Kalu Traders for the year ended 31st December 2025:

- Opening balance (credit): $\text{N}18,500$
- Credit purchases: $\text{N}94,000$
- Cash purchases: $\text{N}12,500$
- Returns outwards: $\text{N}3,200$
- Discount received: $\text{N}1,800$
- Cheques paid to creditors: $\text{N}78,500$
- Dishonoured cheques: $\text{N}1,400$
- Contra entry (set-off) with sales ledger: $\text{N}2,400$

What is the closing credit balance of the Purchases Ledger Control Account at 31st December 2025?

\text{N}28,000

\text{N}31,600

\text{N}40,500

\text{N}25,200

Cevabı ve açıklamayı göster

Cevap: $\text{N}28,000$

Cevap

\text{N}28,000

The closing credit balance of

\text{N}28,000

is determined by summing all credit entries (Opening Credit Balance of

\text{N}18,500

, Credit Purchases of

\text{N}94,000

, and Dishonoured Cheques of

\text{N}1,400

, totaling

\text{N}113,900

) and subtracting all debit entries (Cheques paid of

\text{N}78,500

, Returns outwards of

\text{N}3,200

, Discount received of

\text{N}1,800

, and Set-off of

\text{N}2,400

, totaling

\text{N}85,900

). Cash purchases of

\text{N}12,500

are excluded as they do not affect creditor balances.

Adım Adım Çözüm

1

Identify relevant credit items and calculate total credits.

Total Credits = Opening Credit Balance (

\text{N}18,500

) + Credit Purchases (

\text{N}94,000

) + Dishonoured Cheques (

\text{N}1,400

) =

\text{N}113,900

. Cash purchases are excluded because they do not involve credit suppliers.

Credit purchases increase amounts owed to suppliers, and dishonoured cheques reinstate the liability to creditors on the credit side.

2

Identify relevant debit items and calculate total debits.

Total Debits = Cheques paid to creditors (

\text{N}78,500

) + Returns outwards (

\text{N}3,200

) + Discount received (

\text{N}1,800

) + Contra entry (

\text{N}2,400

) =

\text{N}85,900

.

Payments, allowances, returns, and set-offs reduce the balance owed to creditors and are posted to the debit side of the account.

3

Subtract total debits from total credits to determine the closing credit balance.

Closing Credit Balance =

\text{N}113,900 - \text{N}85,900 = \text{N}28,000

.

The Purchases Ledger Control Account has a normal credit balance, calculated as total credit entries minus total debit entries.

Anahtar Kavram

Purchases Ledger Control Account Balancing

Soru 38Soru →

Match each transaction or accounting adjustment on the left with its correct entry treatment in the Purchases Ledger Control Account on the right.

Soldaki öğeye tıklayın, sonra eşleşen sağdaki öğeye tıklayın

Cevabı ve açıklamayı göster

Cevap

Dishonoured cheques are credited to reinstate liability; contra entries are debited to settle mutual indebtedness; interest charged by suppliers is credited to increase amounts owed; and discounts received are debited to reduce trade payable balances.

Items that increase trade payables (such as interest charged by suppliers and dishonoured payment cheques) are credited to the Purchases Ledger Control Account. Items that decrease trade payables (such as discounts received and contra set-off transfers) are debited to the control account.

Adım Adım Çözüm

1

Analyze the nature of Purchases Ledger Control Account balance

The control account maintains a credit balance representing total trade liabilities (creditors).

Increases in liabilities are credited, while decreases in liabilities are debited.

2

Evaluate dishonoured cheque and interest charged

Both items increase the liability owed to trade creditors.

A dishonoured cheque cancels the original reduction in debt upon payment failure, and interest adds penalty charges to the debt; thus, both must be credited.

3

Evaluate contra set-offs and discounts received

Both items decrease the liability owed to trade creditors.

Contra set-offs discharge debt against sales receivables, and discounts received lower the payable amount; thus, both must be debited.

Anahtar Kavram

Purchases Ledger Control Account Debit and Credit Posting Principles

Tahmini Süre:2m 0s

Soru 39Soru →

The following information was extracted from the financial records of Chukwu & Co. for the month of May 2026:

- Opening Purchases Ledger balances: Credit balance $N45,000$ ; Debit balance $N1,200$
- Credit purchases at list price (subject to $10\%$ trade discount): $N120,000$
- Cash purchases: $N15,000$
- Payments made to trade creditors: $N82,000$
- Discount received from suppliers: $N3,400$
- Bills payable accepted by the firm: $N12,000$
- Contra entry set-off with Sales Ledger: $N4,500$
- Interest charged by trade creditors on overdue accounts: $N800$
- Refund received in cash from suppliers for overpayment: $N1,200$
- Carriage outwards paid: $N3,500$
- Closing Purchases Ledger debit balance: $N900$

What is the closing credit balance of the Purchases Ledger Control Account at the end of May 2026?

N52,800

N59,600

N67,800

N51,500

Cevabı ve açıklamayı göster

Cevap: N52,800

Cevap

The closing credit balance of the Purchases Ledger Control Account is N52,800.

To determine the closing credit balance of the Purchases Ledger Control Account, credit entries (which increase the liability to creditors) and debit entries (which reduce the liability) must be accumulated. Net credit purchases equal

N108,000

(

N120,000

list price less

10\%

trade discount). The credit side contains: Opening Credit Balance (

N45,000

), Net Credit Purchases (

N108,000

), Interest Charged (

N800

), Supplier Refund (

N1,200

), and Closing Debit Balance (

N900

), totaling

N155,900

. The debit side before balancing contains: Opening Debit Balance (

N1,200

), Payments (

N82,000

), Discount Received (

N3,400

), Bills Payable (

N12,000

), and Contra Entry (

N4,500

), totaling

N103,100

. Subtracting the debit subtotal from the credit total yields the correct closing credit balance of

N52,800

. Cash purchases (

N15,000

) and carriage outwards (

N3,500

) are non-ledger control items and must be excluded.

Adım Adım Çözüm

1

Calculate Net Credit Purchases and filter out non-relevant transactions

Net Credit Purchases =

N120,000 - (10\% \times N120,000) = N108,000

. Cash purchases (

N15,000

) and carriage outwards (

N3,500

) are excluded because cash purchases do not affect trade creditors and carriage outwards is a distribution expense.

Control accounts only record credit purchases net of trade discount.

2

Sum all items posted to the Credit side of the Purchases Ledger Control Account

Credit Total = Opening Credit Balance (

N45,000

) + Net Credit Purchases (

N108,000

) + Interest Charged by Creditors (

N800

) + Cash Refund for Overpayment (

N1,200

) + Closing Debit Balance (

N900

) =

N155,900

.

These items increase the liability to creditors or account for debit balance carry-forwards.

3

Sum all items posted to the Debit side of the Purchases Ledger Control Account before balancing

Debit Subtotal = Opening Debit Balance (

N1,200

) + Payments to Creditors (

N82,000

) + Discount Received (

N3,400

) + Bills Payable Accepted (

N12,000

) + Contra Set-off (

N4,500

) =

N103,100

.

These items reduce the liability to trade creditors or account for opening debit balances.

4

Calculate the closing credit balance (Balance c/d)

Closing Credit Balance =

N155,900 - N103,100 = N52,800

.

The balance required to equate the debit and credit totals represents the final net amount owed to creditors.

Anahtar Kavram

Purchases Ledger Control Account Balancing and Item Placement

Tahmini Süre:2m 0s

Soru 40Soru →

The following balance information was extracted from the books of Koko Enterprises for the month ended 31st October 2025:

Transaction Details	Amount (₦)
Balance in creditors ledger (1st Oct 2025) - Credit	$18,500$
Balance in creditors ledger (1st Oct 2025) - Debit	$400$
Total credit purchases	$62,000$
Cash purchases	$12,000$
Payments made to trade creditors	$45,000$
Discount received from suppliers	$2,400$
Discount allowed to customers	$1,800$
Returns outwards	$3,100$
Set-off contra entry with sales ledger	$1,500$
Interest charged by suppliers on overdue accounts	$600$
Cash refund received from supplier for overpayment	$800$

What is the closing credit balance of the Purchases Ledger Control Account at 31st October 2025?

₦29,500

₦34,300

₦41,500

₦30,100

Cevabı ve açıklamayı göster

Cevap: ₦29,500

Cevap

The closing credit balance of the Purchases Ledger Control Account as of 31st October 2025 is ₦29,500.

To find the closing credit balance of the Purchases Ledger Control Account, sum all credit side items (Opening Credit Balance ₦18,500 + Credit Purchases ₦62,000 + Interest Charged ₦600 + Supplier Refund ₦800 = ₦81,900) and subtract all debit side items (Opening Debit Balance ₦400 + Payments to Creditors ₦45,000 + Discount Received ₦2,400 + Returns Outwards ₦3,100 + Set-off ₦1,500 = ₦52,400). This yields ₦81,900 - ₦52,400 = ₦29,500. Cash purchases and discount allowed are excluded as they do not affect creditors' individual ledger balances.

Adım Adım Çözüm

1

Filter out transactions that do not belong in the Purchases Ledger Control Account.

Cash purchases (₦12,000) belong in the Cash Book/Purchases Account, and discount allowed (₦1,800) belongs in the Sales Ledger Control Account.

Control accounts record summary details strictly affecting trade payables/creditors on credit terms.

2

Calculate total credit entries of the Purchases Ledger Control Account.

Total Credit = Opening Credit Balance (₦18,500) + Credit Purchases (₦62,000) + Interest Charged by Suppliers (₦600) + Refund from Supplier (₦800) = ₦81,900.

Transactions increasing liability to suppliers are posted to the credit side.

3

Calculate total debit entries before closing balance.

Total Debit = Opening Debit Balance (₦400) + Payments to Creditors (₦45,000) + Discount Received (₦2,400) + Returns Outwards (₦3,100) + Set-off Contra (₦1,500) = ₦52,400.

Transactions reducing liability to suppliers are posted to the debit side.

4

Determine the closing credit balance.

Closing Credit Balance = Total Credit (₦81,900) - Total Debit (₦52,400) = ₦29,500.

The closing balance represents the net credit balance required to balance the control account.

Anahtar Kavram

Purchases Ledger Control Account Balance Calculation

Control Accounts and Bank Reconciliation

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