MyStudyBro - Revision Exercise Tool

This Revision Handout includes the Questions and Answers of a total of 5 exercises!

Chapters:
Control Accounts - Unit 1 (Pearson Edexcel)
Page 1 (WAC01 or WAC11) 2018 Winter
Page 3 (WAC01 or WAC11) 2018 Winter - Answer
Page 11 (WAC01 or WAC11) 2017 Summer
Page 13 (WAC01 or WAC11) 2017 Summer - Answer
Page 16 (WAC01 or WAC11) 2015 Summer
Page 18 (WAC01 or WAC11) 2015 Summer - Answer
Page 20 (WAC01 or WAC11) 2014 Winter
Page 21 (WAC01 or WAC11) 2014 Winter - Answer
Page 23 (WAC01 or WAC11) 2012 Summer
Page 24 (WAC01 or WAC11) 2012 Summer - Answer
Winter 2018 www.mystudybro.com Accounting Unit 1
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2 Alung is in business buying and selling goods on credit. The following were recorded
in the books for October 2017.
Trade Receivables Ledger Control Account £
Balances 1 October 2017: Debit 40 500
Credit 1 500
Totals for October 2017:
£
Credit sales 56 000
Receipts from credit customers 50 220
Interest charged on overdue account 320
Refund to credit customer 900
Bad debts 1 650
Discount allowed 2 050
Returns inwards 4 300
Trade Receivables Ledger Control Account £
Balances 31 October 2017: Debit To be calculated
Credit Nil
Required
(a) Prepare the Trade Receivables Ledger Control Account for October 2017.
(10)
(b) State two possible reasons why Alung had a credit balance on his Trade
Receivables Ledger Control Account on 1 October 2017.
(2)
On 31 October 2017 Alung compared his Trade Receivables Ledger Control Account
balance with the total balances in his Trade Receivables Ledger and found the
following errors:
(1) a sale of goods to Raj, £1 530, had been recorded in the books as £1 350
(2) discount allowed, £23, was entered in the discount column on the credit side of
the Cash Book and debited to the account of Copra
(3) a sale to Ng, £850, had been debited in the account of Nah
(4) an invoice recording the sale of goods to Shen, £650, had not been recorded in
the books
(5) a sale of office fixtures, £2 400, had been recorded in the Sales Account.
Required
(c) (i) Identify each type of error in (1) to (5).
(5)
(ii) Prepare the Journal entries to correct all the errors. Narratives are not
required.
(10)

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(d) Explain why a compensating error would not be revealed by the trial balance.
(2)
On 1 November 2016 the balance of the Allowance for Doubtful Debts Account was
£2 300
At 31 October 2017, Alung had the following schedule of trade receivables.

Trade Percentage
Age of debt
receivables irrecoverable

0 – 1 month £20 000 2%

1 – 3 months £12 000 5%

3 months plus £6 000 10%

Required
(e) (i) Calculate the allowance for doubtful debts at 31 October 2017.
(3)
(ii) Prepare the Allowance for Doubtful Debts Account for the year ended
31 October 2017.
(3)
(iii) Prepare the Statement of Financial Position (Extract) showing the trade
receivables at 31 October 2017.
(3)
The following information relates to a customer, Weston Supplies, in November 2017.
November 1 Weston Supplies owed Alung £800
5 Alung sold goods, list price £400, to Weston Supplies less 25% trade
discount.
6 Weston Supplies returned goods purchased on 5 November with
a list price of £80
20 Weston Supplies informed Alung that it had ceased trading.
Weston Supplies paid £0.50 in the £1 on all outstanding debts.
Alung considers the remainder of the balance as irrecoverable.
Required
(f ) Prepare the ledger account of Weston Supplies for November 2017 in the books
of Alung.
(5)
(g) Evaluate the use of accounting concepts and conventions in the preparation of
financial statements.
(12)

(Total for Question 2 = 55 marks)

TOTAL FOR SECTION A = 110 MARKS

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Question Answer Mark

Number
2 (a) AO1 (7), AO2(3)
AO1: Seven marks for posting entries into
account.
A02: Three marks for recording interest
charges and refunds correctly and
balancing without alien items.

(10)

Trade Receivables Control Account

Date Details £ Date Details £
2017 2017
Oct 1 Balance 40 500 (1) AO1 Oct 1 Balance 1 500
b/d b/d
Oct 31 Sales 56 000 (1) AO1 Oct Bank 50 220 (1) AO1
31
Interest 320 (1) AO2 Bad debt 1 650 (1) AO1
charged
Bank 900 (1) AO2 Discount 2 050 (1) AO1
(Refund) allowed
Returns 4 300 (1) AO1
inwards
______ Balance 38 000 (1) AO2
c/d
97 720 97 720
Nov 1 Balance 38 000 (1of)
b/d AO1
On debit side

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Question Answer Mark

Number
2 (b) AO1 (2)
AO1: Two marks for identifying possible
reasons.
Customer over payment
Customer prepayment
Goods returned after payment
Incorrect discount allowed calculated by customer
2 x (1) AO1

NOT
Errors in posting
Discount allowed (2)

Question Answer Mark

Number
2 (c)(i) AO2 (5)
AO2: Five marks for applying the principle to
the scenario to determine the type of error.
(1) Original entry (1) AO2
(2) Reversal (1) AO2
(3) Commission (1) AO2
(4) Omission (1) AO2
(5) Principle (1) AO2

NOT
(1) Transposition (2) Compensation (5)

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Question Answer Mark

Number
2 (c)(ii) AO2 (8), AO3(2)
AO2: Eight marks for recording the correct
journal entry.
AO3: Two marks for entries requiring
identification of ledger accounts and
adjustment of financial entries made.

(10)

Journal

Dr Cr
£ £
Raj 180 (1) AO2
Revenue/sales 180 (1) AO2

Discount allowed 46 (1) AO3

Copra 46 (1) AO3

Ng 850 (1) AO2

Nah 850 (1) AO2

Shen 650 (1) AO2

Revenue/sales 650 (1) AO2

Revenue/sales 2 400 (1) AO2

Office furniture/fixtures 2 400 (1) AO2

NOT
Sales day book instead of revenue/sales

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Question Answer Mark

Number
2 (d) AO1(2)
AO1: Two marks for explaining why the error
is not revealed by the trial balance.
There is a debit entry and a credit entry of equal
value/at least two different errors which cancel
each other out (1) AO1 therefore both sides of the
trial balance will agree. (1) AO1

(2)

Question Answer Mark

Number
2 (e)(i) AO1(3)
AO1: Three marks for calculating the
allowance.
£

0 – 1 month 400 (1) AO1

1 – 3 months 600 (1) AO1
3 months plus 600 (1) AO1
1 600
(3)

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Question Answer Mark

Number
2 (e)(ii) AO1(2), AO2(1)
AO1: Two marks for recording the balances
correctly.
AO2: One mark for calculating and recording
the transfer to the income statement.

(3)

Allowance for Doubtful Debts Account

Date Details £ Date Details £

2017 2016
Oct 31 Income statement 700 (1of) Nov Balance b/d 2 300 (1) AO1
AO2 1
Balance c/d 1 600 _____
2 300 2 300
Oct Balance b/d 1 600 (1of)
31 AO1
On credit side

Question Answer Mark

Number
2 (e)(iii) AO1(2), AO2(1)
AO1: Two marks for recording the correct
heading and allowance.
AO2: One mark for recording the net value of
trade receivables.

Statement of Financial Position (Extract) at

31 October 2017

Current assets (1) AO1

Trade receivables 38 000 of
Less Allowance for
doubtful debts (1 600) (1of) AO1
36 400 (1of) AO2
(3)

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Question Answer Mark

Number
2 (f) AO1(1), AO2(4)
AO1: One mark for recording the opening
balance.
AO2: Four marks for calculating and
recording the remaining entries.

(5)

Weston Supplies Account

Date Details £ Date Details £

2017 2017
Oct 1 Balance b/d 800 (1) AO1 Oct 6 Returns in 60 (1) AO2
Oct 5 Sales 300 (1) AO2 Oct Bank 520 (1) AO2
20
_____ Bad debt 520 (1) AO2
1 100 1 100

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Question Indicative Content Mark

Number
2 (g) AO1 (1), AO2 (1), AO3 (5), AO4 (5)

Positive points for concepts and conventions

Ensures consistency of approach when different businesses

use the same concepts in preparing their financial
statements.
Ensures greater accuracy in the calculation of profit for a
period when the expenses and incomes have been calculated
using accounting concepts and conventions.
Stakeholders can have trust and faith in the published
financial statements of the business to be used for their
assessment of the business
Financial statements can be compared from business to
business as the financial statements are prepared using the
same concepts and conventions.

Negative points for concepts and conventions

Concepts and conventions are often open to interpretations

and different business may take different interpretations
when preparing their accounts.
Concepts and conventions can on occasions be contradictory
e.g. it may be consistent to use straight line depreciation but
not prudent in the early years of a non-current assets life
when depreciation is high.
The application of concepts and conventions requires those
preparing the financial statements to be skilled in accounting
approaches therefore there is a cost implication.
Do not incorporate non-financial factors.

Decision
Candidates may conclude that the application of concepts and
conventions is on balance a positive development in that it
provides a consistent approach to the preparation of financial
statements. Candidates should support that decision with an
appropriate rationale.

NOT
Description of concepts and conventions.

(12)

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Level Mark Descriptor

0 A completely incorrect response.
Level 1 1-3 Isolated elements of knowledge and understanding
recall based.
Weak or no relevant application to the scenario set.
Generic assertions may be present.
Level 2 4-6 Elements of knowledge and understanding, which are
applied to the scenario.
Chains of reasoning are present, but may be
incomplete or invalid.
A generic or superficial assessment is present.
Level 3 7-9 Accurate and thorough understanding, supported
throughout by relevant application to the scenario.
Some analytical perspectives are present, with
developed chains of reasoning, showing causes and/or
effects.
An attempt at an assessment is presented, using
financial and non-financial information, in an
appropriate format and communicates reasoned
explanations.

Level 4 10 - 12 Accurate and thorough knowledge and understanding,

supported throughout by relevant and effective
application to the scenario.
A coherent and logical chain of reasoning, showing
causes and effects.
Assessment is balanced, wide ranging and well
contextualised using financial and non-financial
information and makes informed recommendations
and decisions.

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SECTION B
Answer THREE questions from this section.
3 Gihan is a retailer who buys and sells goods. The following information was available
for the month of April 2017.
• Balances of the Trade Receivables Control Account on 1 April 2017 were:
£
3 450 Dr
50 Cr
• Summary of transactions for April 2017 (before corrections):
£
Sales: Cash 1 900
Credit 7 830
Sales returns 470
Discount allowed 520
Cheques received from trade receivables 6 695
Refund to credit customer by cheque 210
Interest charged on overdue account 95
• On inspection of the books, Gihan found the following errors in the account of
Mille Street Stores:

– a return of goods, £70, from Mille Street Stores had not been recorded in the
books

– trade discount had been allowed by Gihan on a sale of goods at the rate of
25%. The sale should have been allowed trade discount at the rate of 10%.
Mille Street Stores were charged £225 after trade discount

– Gihan’s Trade Receivables Ledger on 30 April 2017 (before correction of Mille

Street Stores Account) contained the following balances:

Dr Cr
£ £
Muttiah 1 000 -
Nalak - 150
Southsyde Trading 2 300 -
Mille Street Stores 700 -

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Required
(a) Explain how the Trade Receivables Ledger differs from the Sales Day Book.
(4)
(b) Prepare the journal entries to correct the two errors. Narratives are not required.
(6)
(c) Calculate the corrected closing balance on the account of Mille Street Stores at
30 April 2017.
(4)
(d) Prepare the Trade Receivables Ledger Control Account for the month of April 2017.
(10)
(e) Evaluate the usefulness of preparing control accounts.
(6)

(Total for Question 3 = 30 marks)

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Question Answer Mark

Number
3 (a) AO1 (4)
A01: Four marks for stating the difference between
trade receivable ledger and sales day book.

The trade receivables ledger consists of the individual

accounts (1)AO1 of customers to whom we have sold
goods or services on credit (1)AO1.

The sales day book lists all of the credit sales (1)AO1
made in a day/specific period. (1)AO1 before it is
totalled and posted to the ledger.

Accept
The trade receivables ledger is not a book of prime entry
(1) the sales day book is a book of prime entry (1)

NOT
All sales (must be credit)
(4)

Question Answer Mark

Number
3 (b) AO1 (2), AO2 (4)
A01: Two mark for identifying the account.
A02: Four marks for calculating the figure and
inserting this correctly in the journal.

Journal
Dr Cr
£ £
Sales returns/TRCA (1)AO1 70 (1)AO2
Mill Street Stores 70 (1)AO2

Mill Street Stores 45 (1)AO2

Revenue (Sales)/TRCA (1)AO1 45 (1)AO2
(6)

Question Answer Mark

Number
3 (c) AO1 (2), AO2 (2)
A01: Two marks for recording the opening and
closing balances.
A02: Two marks for making the correct
adjustments.

Mill Street Stores

£
Balance b/d 700 (1)AO1
Less Returns (70) (1)AO2
630
Plus Trade discount 45 (1of from (b))AO2
Corrected balance 675 (1of)AO1
(4)

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Question Answer Mark

Number
3 (d) AO1 (1), AO2 (6), AO3 (3)
A01: One mark for recording the correct closing credit
balance.
A02: Six marks for correctly applying the monthly
balances to the account.
A03: Three marks for calculating the corrected figure
from the journal adjustment before applying the
corrected figure to the account.

(10)
Trade Receivables Control Account

£ £
Balance b/d 3 450 Balance b/d 50
Sales returns
Revenue7830(1)AO2+45 7 875 (1)AO3 540 (1)AO3
470(1)AO2+70
520
Bank (cash refund) 210 (1)AO2 Discount allowed (1)AO2

Interest charged 95 (1)AO2 Bank (receipts) 6 695 (1)AO2

Balance c/d 150 Balance c/d 3 975

11 780 11 780
Balance b/d 3 975 (1)AO3 Balance b/d 150 (1)AO1

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Question Answer Mark

Number
3 (e) AO2 (1), AO3 (2), AO4 (3)

Potential positive arguments for control accounts

• Checking device on the double entry
• Facilitates total balances for financial statement
preparation
• Restricts fraud
• Owner can see total trade payables and trade
receivables

Potential negative points against control accounts

• Additional resources required to prepare.
• Require an experienced book-keeper to prepare
• Not all errors will be revealed.

Decision
Candidates may conclude that the arguments for or against
outweigh the counter arguments. Having reached a decision
the rationale for that position should be developed. (6)
Level Mark Descriptor
0 A completely incorrect response.
Level 1 1-2 Isolated elements of knowledge and understanding which are recall
based.
Generic assertions may be present.
Weak or no relevant application to the scenario set.
Level 2 3-4 Elements of knowledge and understanding, which are applied to the
scenario.
Some analysis is present, with developed chains of reasoning,
showing causes and/or effects applied to the scenario, although these
may be incomplete or invalid.
An attempt at an evaluation is presented, using financial and perhaps
non-financial information, with a decision.
Level 3 5-6 Accurate and thorough knowledge and understanding. Application to
the scenario is relevant and effective.
A coherent and logical chain of reasoning, showing causes and effects
is present.
Evaluation is balanced and wide ranging, using financial and perhaps
non-financial information and an appropriate decision is made.

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SECTION B
SOURCE MATERIAL FOR USE WITH QUESTION 4
4 The following balances were extracted from the books of Promita for the month of
February 2015:
Opening balances on 1 February
Sales ledger control account £32 500 Dr
£950 Cr
Provision for doubtful debts £1 300
Additional information for the month of February 2015:
1. Totals for the month of February
£
Sales day book 66 580
Cash sales 3 000
Sales returns day book 2 060
Cheques from trade receivables 55 900
Dishonoured cheque 3 360
Refund to trade receivable by cheque 190
Discount allowed 1 620
Bad debt written off 900
2. There was no credit balance on the Sales Ledger Control Account at 28 February
2015.
3. The bad debt written-off in February related to the debt of Chumi, who was only
able to pay £600 of his debt. The balance was irrecoverable.
4. The provision for doubtful debts is to be maintained at 4% of trade receivables at
28 February 2015.

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Required:
(a) Distinguish between bad debts and a provision for doubtful debts.
(4)
(b) Suggest two possible reasons for the opening credit balance on the Sales Ledger
Control Account at 1 February 2015.
(2)
(c) Prepare the:
(i) Sales Ledger Control Account for the month of February 2015
(10)
(ii) journal entry recording the writing off of the bad debt of Chumi
(6)
(iii) Provision for Doubtful Debts Account for the month of February 2015.
(6)
(d) Evaluate the use of control accounts.
(4)

(Total for Question 4 = 32 marks)

Answer space for question 4 is on pages 21 to 24 of the question paper.

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Section B

4 (a) Bad debts – Actual bad debts from the last accounting period. √√
Provision for doubtful debts- An estimate of the amount that Promita will lose in the next
financial period because of bad debts. √√
(4)
(b) Possible reasons:
• Overpayment by debtor
• Prepayment by debtor
• Goods returned after payment
• Error in posting

√ per point x 2 (2)

(c)(i)
Sales Ledger Control Account
£ £
1 Feb Balance b/d 32 500 1 Feb Balance b/d 950 √ both
Feb Sales 66 580 √ Feb Sales returns 2 060 √
Bank (dishonoured Bank 55 900 √
cheque) 3 360 √ Discount allowed 1 620 √
Bank (refund) 190 √ Bad debt 900 √
Balance c/d 41 200 √
102 630 102 630
1 Mar Balance b/d 41 200 √of if Dr balance

Narratives must be present but accept reasonable narratives

Ignore aliens
(10)

(ii)
Journal
Dr Cr
£ £
Bank √ 600 √
Bad debts 900 √
Chumi √ 1 500 √

Bad debt: Chumi paid £600 of his debt of £1 500. √

(6)

(iii)
Provision for Doubtful Debts Account
£ £
28 Feb Balance c/d 1 648 √of 1 Feb Balance b/d 1 300 √
28 Feb Income statement √ 348
√√(√of)
1 648 1 648
1 Mar Balance b/d 1 648 √of
if Cr

(6)

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(d)
Valid answers may include
In favour
• Checks accuracy of ledger
• Minimise fraud
• Help to locate errors
• Provide summary totals to speed up preparation of the financial statements
Against
• Do not pinpoint errors or correct errors
• Require accounting expertise
• Not all errors can be revealed by control accounts.

√√ per point (Max one point in favour and one point against) (4)

(Total 32 marks)

5 (a)
Date Receipts Issues Balance
1 March 600@ £1.20 √√

3 March 1 800 @ £1.30 600 @ £1.20

1 800 @ £1.30 √√

5 March 1 800 @ £1.30 400 @ £1.20 √√

200 @ £1.20

17 March 1 500 @ £1.50 400 @ £1.20

1 500 @ £1.50 √√

20 March 1 000 @ £1.50 400 @ £1.20

500 @ £1.50 = £1 230 √√
(10)
(b)
Manufacturing Account for the month of March 2015
Metres £
Inventory of raw material 1 March 2015 600 720 √√
Purchases of raw material 3 300 4 590 √√
3 900 5 310
Inventory of raw material 1 March 2015 900 1 230 √√of
Cost of raw materials consumed 3 000 4 080

Factory wages 200 paid hours x £4 per hour x 12 9 600 √√

Direct expenses 3 800 x 40% 1 520 √√
Prime cost √ 15 200 √of
(12)

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SECTION B

SOURCE MATERIAL FOR USE WITH QUESTION 4

4. Ranatunga maintains double-entry records and also control accounts.

(1) On 1 January 2013 he had the following balances on his Purchases Ledger Control Account:

£430 Dr
£78 000 Cr

(2) Ranatunga extracted the following balances from his Ledger on 31 December 2013:

£
Cheques paid to suppliers 497 000
Refund from supplier 4 000
Discount received 8 200
Cash purchases 24 600
Sales ledger contra/Purchases ledger contra 2 150
Credit purchases 505 000
Returns outwards 15 600

(3) After extracting the balances in (2) above, the following errors were discovered:

• A discount received of £200 had been debited to the Discount Received Account
• A purchase of goods from Archana, £750, had been correctly entered in the Purchases Day
Book but had been recorded in Archana’s account at £570
• The Purchases Day Book had been undercast by £2 500
• A purchase from C. Vissing, £300, had been entered into the account of B. Vincent.

(4) On 1 January 2014 the Purchases Ledger Control Account had the following balances:

£650 Dr
? Cr

Required:

(a) Prepare the Journal correcting the errors in (3) above. Narratives are not required.
(8)

(b) Prepare the Purchases Ledger Control Account for the year ended 31 December 2013, following
the correction of all errors.
(16)

(c) Suggest two possible reasons for a debit balance in the Purchases Ledger Control Account.
(4)

(d) Evaluate the use of control accounts.

(4)

(Total 32 marks)
Answer space for question 4 is on pages 23 to 25 of the question paper.

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SECTION B
4 (a)
Journal
Dr Cr
£ £

Suspense 400 √
Discount received 400 √

Suspense 180 √
Archana 180 √

Purchases 2 500 √
Suspense 2 500 √

B Vincent 300 √
C Vissing 300 √
(8)
(b)
Purchases Ledger Control Account
£ £
Balance b/d 430 Balance b/d 78 000
Payments to creditors 497 000 √√ Refund 4 000 √√
Discount rec’d (8 200√+400√) 8 600 √ Credit purchases
Sales ledger contra 2 150 √√ (505 000√+2 500√) 507 500 √

Returns outwards 15 600 √√

Balance c/d 66 370 Balance c/d 650
590 150 590 150
Balance b/d 650 √ Balance b/d 66 370 √of
(16)
(c)
• Goods returned after payment made
• Discount received not posted
• Overpayment to creditor
• Contra from sales ledger

2 marks x 2 points (4)

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(d)Valid points may include:

Positive
• Tests arithmetical accuracy
• Helps to identify areas where errors exist
• Through separation of duties protects against fraud
• Provides total of trade payables or trade receivables.

Negative
• Time consuming
• Requires double entry accounting and a high level of staff skill
• Some errors are not discovered by control accounts e.g errors of omission.

√√ per point x 2 - MAX 1 points positive and 1 points negative

(4)
(Total 32 marks)

5 (a)
Allocation occurs where a cost is wholly identifiable with one cost centre √√

Apportionment occurs where costs are shared and must be apportioned across the
cost centres on some equitable basis √√
(4)
(b) (i)
East Town Weststead Northerton
£000’s £000’s £000’s
Marketing 90 36 54 √√√√
Premises running costs 70 50 60 √√√√
Management salaries 550 125 225 √√√√
Depreciation 36 12 24 √√√√
746 223 363
(16)
(ii)
Profit for the year 750 260 500 √√
Less revised overheads 746 223 363 √√ of
Revised profit for the year 4 37 137 √√√√(√√of)

(8)

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SECTION B
SOURCE MATERIAL FOR USE WITH QUESTION 4

4. Zaman is in business buying and selling goods on credit. He maintains a full set of double entry
records. The following information relates to the month of March 2012:

1. On 1 March 2012 Zaman was owed the following by his debtors:

£
Fahi 1 500
Shirin 500
Marvan 800
Jegan 2 900

2. Sales were made by Zaman as follows:

Fahi 6 March Goods with a list price of £1 200, allowed 20% trade discount
Marvan 15 March Goods with a list price of £700, allowed 10% trade discount
Cash sales 20 March £500
Fahi 26 March Goods with a list price £300, but no discount.

3. Sales returns:
Fahi 9 March Goods supplied on 6 March with a list price of £200

4. Zaman received the following payments by cheque:

Fahi 10 March The balance owing on 1 March less 2% cash discount
Jegan 14 March £2 000 less 3% cash discount

5. On 13 March Zaman was informed that Shirin had been declared bankrupt and a payment of
£0.40 in the £1 was received in final settlement of the debt.

Required:

(a) Zaman divides his ledger into three sections – general ledger, purchases ledger and sales ledger.
Explain two advantages of dividing the ledger into three sections.
(4)

(b) Prepare the following ledger accounts in the books of Zaman:

(i) Fahi account

(8)

(ii) Shirin account

(2)

(iii) sales ledger control account.

(14)

(c) Evaluate the use of control accounts in a business.

(4)

(Total 32 marks)
Answer space for question 4 is on pages 18 to 19 of the question paper.

P40265RA 8
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Question Answer Mark

Number
4(a) • Division of labour – a number of people can work on the
ledger at the same time
• Segregation of duties
• Ease of reference – similar accounts are placed together and
can be referred to more easily
• Balances from sections of the ledger e.g sales ledger, can be
more easily obtained
• Fraud prevented/ additional control
• Specialisation
(4)
√√ per valid point X 2

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4(b) Fahi account
£ £
1 March Balance b/d 1 500 √ 9 March Goods/Sales
returns 160 √
6 March Goods/sales 960 √ 10 March Bank
1 470 √
26 March Goods/sales 300 √ 10 March Discount allowed
30 √ (8)
31 March Balance c/d 1 100
√√(√OF)
2 760 2
760
1 AprilBalance b/d 1 100

(ii)
Shirin account (2)
£ £
1 March Balance b/d 500 13 March Bank/Cash 200
√
___ 13 March Bad debts 300 √
500 500

(iii) Sales ledger control account

£ £
1 March Balance b/d 5 700 √√ 31 March Sales returns (14)
160 √√
31 March Sales 1 890 √√ 31 March Bank
1470+1940+200 3 610 √√
31 March Discount allowed
90 √√
31 March Bad debts
300 √√
31 March Balance c/d 3
430 √√

(√OF if Cr)
7 590 7 590
1 AprilBalance b/d 3 430
√OF for each entry if on correct side with narrative

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Question Answer Mark

Number
4(c) Valid answers may include:

Benefits

• The ledger can be sub divided for checking arithmetical

accuracy
• Checking device
• Identifies errors
Against

• Those errors which do not affect the balancing of the trial

balance are not revealed by control accounts

√√ for one benefit and √√ for one point against.

(4)
NO Marks for ‘corrects errors’

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