Which source normally provides the total of credit purchases posted to the purchases ledger control account?
Correct answer: D. The purchases day book
- A. The sales day book
- B. The journal proper
- C. The cash book
- D. The purchases day book
Explanation
The purchases day book records credit purchases of goods, and its total is posted to the debit side of the purchases ledger control account. The cash book records payments and cash transactions rather than the total of credit purchases.
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About Bank Reconciliation and Control Accounts
Bank reconciliation explains differences between the cash book and bank statement through unpresented cheques, outstanding deposits, bank charges, direct payments, credited amounts and recording errors. Control accounts summarise receivables and payables ledgers, and their balances are reconciled with individual accounts to locate discrepancies.
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34 free Bank Reconciliation and Control Accounts MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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More Bank Reconciliation and Control Accounts questions
A purchases ledger control account has an opening credit balance of Rs. 60,000, credit purchases of Rs. 220,000, payments to suppliers of Rs. 180,000, returns outward of Rs. 12,000 and discounts received of Rs. 8,000. What is the closing balance?
In a sales ledger control account, which item is normally recorded on the debit side?
A bank reconciliation statement is prepared after all known bank charges and direct receipts have been entered in the cash book. Which item would still normally appear as a reconciliation item?
A control account is used in a general ledger while detailed customer or supplier accounts are kept in subsidiary ledgers. Which feature is a major advantage of this arrangement?
A sales ledger control account has a debit balance. What does this balance normally represent?
The cash book shows a favourable bank balance of Rs. 31,500. Bank charges of Rs. 1,200 and a direct credit of Rs. 4,000 are not yet recorded in the cash book. Unpresented cheques are Rs. 6,500 and deposits in transit are Rs. 3,000. What balance should appear on the bank statement?