Control Accounts and Self-balancing Ledgers - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1997

The principle use of control accounts is to

A. Localize error within the ledger
B. Prevent fraud
C. Increase sales
D. Record assets and liabilities

Question 7:

• JAMB 1997

which of the following conditions best represents the net effect of discount allowed on credit sales on the accounts of the business?

A. Decrease in the closing balance of sales ledger control accout
B. Increase in net profit
C. Increase in the value of sales
D. Decrease in the value of purchases in the trading account

Question 8:

• JAMB 1998

The balance on a purchase ledger control account represents the?

A. Present amount that a business owes its suppliers at date
B. Total credit avaiable to the end of the year to be utilized in future
C. Total credit the business enjoyed for the particular year from its suppliers
D. Total credit owd the business by its customers

Question 9:

• JAMB 1998

A powerful instrument of control over both the sales ledger and the clek whose duty is to post the ledger is the?

A. Total debtors account
B. Purchase day book
C. Sales day book
D. Cash book

Question 10:

• JAMB 1998

Mini Enterprises Sales Ledger as at 31/12/94
read:
N
Balance b/f 12750
Total credit sales 28185
Payments by debtors 12112
Discount allowed 638
Sales returns 1500
Prepare the sales ledger control account and determine the balance due from debtors.

A. N40,935
B. N27,961
C. N26,685
D. N1,185