Control Accounts and Self-Balancing Ledgers
Accounts · 50 practice questions
Meaning and uses of control accounts; the purchases ledger control account; the sales ledger control account.
- Understand the meaning and uses of control accounts in a business enterprise.
- Differentiate between the sales ledger control account and the purchases ledger control account.
- Identify the entries in control accounts.
Try a few questions
- Practice question 1
Control accounts specifically are typically maintained in the general ledger, separate from
- A.the cash book, which they are, in fact, always combined with directly
- B.the individual personal accounts they summarize
- C.no particular account of any kind, despite being maintained separately
- D.a factor entirely unrelated to the individual personal accounts summarized
Show the answer
B. the individual personal accounts they summarize
Control accounts specifically are typically maintained in the general ledger, separate from the individual personal accounts they summarize.
- Practice question 2
A contra entry between the sales ledger and purchases ledger control accounts specifically arises when a customer is also a supplier, and the two balances are
- A.offset against each other
- B.ignored entirely, with no adjustment made in either control account
- C.added together, rather than offset against each other
- D.a factor entirely unrelated to offsetting balances of any kind
Show the answer
A. offset against each other
A contra entry arises when a customer is also a supplier, and the two balances are specifically offset against each other.
- Practice question 3
Control accounts specifically help management identify and locate
- A.errors within specific areas of a business's ledgers
- B.a factor entirely unrelated to the location of errors within ledgers
- C.no particular error of any kind, despite their own recognized purpose
- D.only errors made by the business's own external auditor
Show the answer
A. errors within specific areas of a business's ledgers
Control accounts specifically help management identify and locate errors within specific areas of a business's ledgers.
More UTME Accounts topics
- Nature and Significance of Bookkeeping and Accounting
- Principles of Double Entry
- Ethics in Accounting
- Cash Book
- Bank Transactions and Reconciliation Statements
- Final Accounts of a Sole Trader
- Stock Valuation
- Incomplete Records and Single Entry
- Manufacturing Accounts
- Accounts of Not-For-Profit-Making Organizations
- Departmental Accounts
- Branch Accounts
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