AFU 07202 INTRODUCTION TO ACCOUNTING

CONTROL ACCOUNTS REVIEW QUESTIONS

QUESTION ONE
Using the following information, construct both a sales ledger and purchase ledger control
account for the month end of January 2019 and so calculate the creditor and debtor final
position.
Tshs
Debtors at 1 January 27,971,000
Creditors at 1 January 15,725,000
Credit sales 42,500,000
Returns from debtors 800,000
Returns to suppliers 650,000
Payment received from debtors 35,675,000
Bad debts written off 450,000
Payment to creditors 19,750,000
Credit purchases for month 22,750,000
Discounts allowed 400,000
Discounts received 380,000

QUESTION TWO

Sopenyope proves the accuracy of its sales and purchase ledgers by preparing monthly
control accounts. At 1 May 2018 the following balances existed in the company's
accounting records, and the control accounts agreed:

Debit Credit
Tshs Tshs
Sales ledger control account 188,360,000 2,140,000
Purchase ledger control account 120,000 89,410,000

The following are the totals of transactions which took place during May 2018, asextracted
from the company's records.

Tshs
Credit sales 101,260,000.0
Credit purchases 68,420,000.0
Returns inwards 9,160,000.0
Returns outwards 4,280,000.0
Cash received from customers 91,270,000.0
Cash paid to suppliers 71,840,000.0
Cash discounts allowed 1,430,000.0
Cash discounts received 880,000.0
Irrecoverable debts written off 460,000.0
Contra settlements 480,000.0
At 31 May 2018 the balances on the customers and supplier personal accounts were extracted
and totalled as follows:

Debit balances Credit balances

Tshs Tshs
Sales ledger To be ascertained 2,680,000
Purchase ledger 90,000 To be ascertained
Required:
Prepare sales and purchases ledger control accounts.

QUESTION THREE
Consider the following balances
Sales ledger Purchases ledger

Balances at 1st May 2017 Tshs 89,300,000 Tshs75,210,000

Next enter the transaction from the list for May 2017 in relevant control account
Tshs
Credit sales 101,260,000.0
Credit purchases 68,420,000.0
Returns inwards 9,160,000.0
Returns outwards 4,280,000.0
Cash received from customers 91,270,000.0
Cash paid to suppliers 71,840,000.0
Cash discounts allowed 1,430,000.0
Cash discounts received 880,000.0
Irrecoverable debts written off 460,000.0
Contra settlements 480,000.0

QUESTION FOUR

Uhobhokile is a wholesaler. He prepares control accounts at the end of each month. The
following information relates to the month ended 30 April 2019.

Tshs
Sales ledger control account balance 1 April 2019 64,350,000
Cheques received from credit customers 136,800,000
Discount allowed 5,250,000
Bad debts written off 7,900,000
Cash sales 10,750,000
Credit sales 153,400,000
Returns inwards 8,100,000

Required:
Prepare the sales ledger control account for the month ended 30 April 2019.
QUESTION FIVE

On 1 April 2018, Yebweyebwe sales ledger control account showed the following
balances: Tshs20,450,000 debit and Tshs. 600,000 credit.

During April the following transactions were recorded:

Tshs
Credit sales 50,500,000
Cash sales 10,000,000
Returns from credit customers 700,000
Receipts from credit customers 48,600,000
Refunds to credit customers 750,000
Discount allowed 1,200,000
Bad debt written off 800,000

On 1 May 2018, Yebweyebwe’s sales ledger control account showed a credit

balance of Tshs180,000. The debit balance is to be determined.

REQUIRED

Prepare the sales ledger control account for the month of April 2018. Balance
the account and bring down the balances.

QUESTION SIX

The following information is available from the books of Kijuna for August 2019.

Tshs
Trade receivables at 1 August 2019 27,520,000
Credit sales 32,400,000
Cash sales 19,970,000
Sales returns from credit customers 1,700,000
Cheques received from credit customers 40,150,000
Discount allowed 780,000
Bad debts written off 2,900,000
Interest charged on overdue accounts 600,000

REQUIRED
Prepare the sales ledger control account for August. Balance the account and bring down the
balance on 1 September 2019

QUESTION SEVEN
Tsang is in business buying and selling goods on credit. The following information is
available for the month of March 2019.
Tshs
Revenue (sales) 65,000,000,000
Inventory (stock) 1 March 3,400,000,000
Trade payables (creditors) 1 March 1,700,000,000
Payments to suppliers 47,000,000,000
Discount received 300,000,000
Inventory (stock) 31 March 2,900,000,000
Ordinary goods purchased 47,900,000,000
Wages & expenses 2,500,000,000

REQUIRED
Prepare the purchase ledger control account showing the balance of trade payables (creditors)
at 31 March 2019.

QUESTION EIGHT
Mtoto Mary buys and sells on credit. She supplied the following information for the month
ended 31 May 2016.
2016 Tshs
May 1 Trade receivables 5,687,000,000
31 Credit sales 72,641,000,000
Receipts from credit customers 64,500,000,000
Credit notes issued to customers 8,242,000,000
Cash discounts allowed 1,894,000,000
Bad debts 800,000,000
Contra entry 300,000,000
The sales journal had been under-cast by Tshs. 86,000,000. A cheque received and banked on
8 May from John Bakery for Tshs.2,300,000,000 had been returned by the bank because of
insufficient funds.

REQUIRED
Prepare the sales ledger control account for the month ended 31 May 2016. Balance the
account at that date and bring the balance down on 1 June 2013.
QUESTION NINE

The following information was obtained from the books of Sambwiya Mbwile.

Tshs in ‘000,000’
1 April 2017 Sales ledger’s balance 7 190
Purchases ledger’s balance 4 120

30 April 2017 Credit sales for month 46 300

Credit purchases for month 29 900
Cash sales for month 14 360
Cash purchases for month 9 750
Sales returns for month 1 070
Purchase returns for month 940
Cheques received from trade receivables 38 900

Cheques paid to trade payables 28 100

Discounts allowed 1 060
Discounts received 760
Balance in sales ledger set off against balance in purchases
Ledger 90
Interest charged to customers on overdue accounts 20
Interest charged by supplier on overdue account 10

REQUIRED
(a) Select the appropriate items and prepare the purchases ledger control account for the month
of April.
(b) Select the appropriate items and prepare the sales ledger control account for the month
of April.

QUESTION TEN

The following information was obtained from the books of John Cooes.
Tshs in thousands
1 February 2019 Trade receivables balance 14 900 Dr
Trade payables balance 17 160 Cr
28 February 2019 Cheques received from trade receivables 45 800
Cheque from trade receivable later
Dishonoured 200
Cheques paid to trade payables 32 500
Discount allowed 2 700
Discount received 910
Purchases returns 3 800
Bad debts 1 800
Cash sales 10 500
Credit Sales 64 500
Credit Purchases 48 800
Set off 650
1 March 2019 Trade receivables balance 600 Cr
 Trade payables balance 450 Dr

REQUIRED
Prepare the purchases ledger control account and sales ledger control account in
the month of February 2019.