Question 1

A credit balance in a customer's account in the debtors ledger could be due to:

Accepted Answer

A)   increased credit sales in the period
B)   an overpayment by the customer
C)   a bad debt
D)   return of goods purchased by the customer.

Question 2

The general ledger account representing the subsidiary ledger is known as a control account because:

Accepted Answer

A)   inclusion of both control accounts and subsidiary ledger accounts in the general ledger improves control
B)   the accuracy of the detailed accounts in the subsidiary ledger can be checked against the aggregate data and the balance contained in it
C)   subsidiary ledgers eliminate the need to record totals in the general ledger
D)   it includes all transactions in the subsidiary ledger.

Question 3

Use the information given below to answer the following questions:
Gum Ltd maintains subsidiary ledgers for debtors and creditors. At 1 July 2011, debtors owed $4000, and $7200 was owing to creditors. Transactions for year ended 30 June 2012 were as follows:
  $ Credit sales 14000 Cash sales 3000 Credit purchases 23000 Cash purchases 1500 Cash received from debtors 11000 Cash paid to creditors 25000\begin{array} { l r } 	ext { }&\$\	ext { Credit sales } & 14000 \	ext { Cash sales } & 3000 \	ext { Credit purchases } & 23000 \	ext { Cash purchases } & 1500 \	ext { Cash received from debtors } & 11000 \	ext { Cash paid to creditors } & 25000\end{array}  Credit sales  Cash sales  Credit purchases  Cash purchases  Cash received from debtors  Cash paid to creditors ​$1400030002300015001100025000​ 
-What was the balance of the debtors control account at 30 June 2012?

Accepted Answer

A)   $3000
B)   $7000
C)   $10 000
D)   $14 000.

Exam 17: Appendix: Special Journals, subsidiary Ledgers and Control Accounts

Correct Answer
verified

The general ledger account representing the subsidiary ledger is known as a control account because:

Correct Answer
verified

A credit balance in a customer's account in the debtors ledger could be due to:

Correct Answer
verified

Exam 17: Appendix: Special Journals, subsidiary Ledgers and Control Accounts

Correct AnswerverifiedShow Answer

The general ledger account representing the subsidiary ledger is known as a control account because:

Correct AnswerverifiedShow Answer

A credit balance in a customer's account in the debtors ledger could be due to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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