I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

CHAPTER ROUNDUP 

QUICK QUIZ

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CHAPTER 14  

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  CONTROL ACCOUNTS 

 

261 

4 

An invoice amount has been incorrectly posted to the sales day book. The memorandum accounts are 

posted direct from the invoices. A receivables control account reconciliation will reveal this error. 

True or false? 

5 

A transaction for $10,000 of sales offers 2% trade discount and 5% cash discount. If both discounts are 

claimed, how much is posted to revenue? 

A $9,510 

B $9,500 

C $9,310 

 D 

$9,300 

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PART E: PREPARING A TRIAL BALANCE 

 

262

 

1 

D 

(i), (ii), (iii) and (iv) 

2 A DEBIT 

RCA 

$4,000 

3 

A  

 RECEIVABLES 

CONTROL 

 

$     

 

$   

Bal b/d (bal. figure) 

22,000 Cash 

50,000

Sales 123,000  

 

              Bal c/d 

  95,000

 

 

145,000  

 

145,000

 

If you had answer B, you reversed the double entry and so produced a payables control account. 

In answer D, you did not deduct discounts allowed  from the invoiced sales amount; while in 

answer C you added discounts allowed to the invoiced sales amount instead of deducting. 

4 

True.  However, if the memorandum accounts were posted from the sales day book, then the answer 

would be false. 

5 

C 

The sale is recorded as $9,800 ($10,000 – $200 trade discount). 

 

Discount allowed is then 5% × $9,800 = $490. 

 

 

Amount posted to revenue = $9,800 – $490 = $9,310 

 

 

 

 

 

 

 

Now try ... 

 

Attempt the questions below from the Practice Question Bank 

 

Qs 55 – 59 

 

 

 

 

 

 

 

 

 

 

ANSWERS TO QUICK QUIZ 

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263 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  Bank statement and cash book 

E4(b)

2  The bank reconciliation 

E4(a), (c)–(f) 

3 Worked 

examples 

E4(c)–(f)

 

 

 

Bank reconciliations

It is very likely that you will have had to do a bank reconciliation at 

work. If not, you will probably have done one on your own bank 

account without even being aware of it. 

The first two sections of this chapter explain why we need a bank 

reconciliation, and the sort of differences that need to be 

reconciled.  

The third section takes you through some examples of increasing 

complexity. 

 

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