WAEC Accounting 2012 Theory — Question 3

Model answer

(a) Uses of control account: (i) It is used to trace errors and mistakes. (ii) It is used to minimize fraud in the organisation. (iii) It is used to determine total debtors and creditors of the organisation. (b) Items debited in the sales ledger control account: (i) Credit sales. (ii) Dishonoured cheques. (iii) Debit notes sent to customers. (iv) Interest charged on overdue accounts. (v) Bills receivable dishonoured. (c) Subsidiary books from which sales ledger control account is compiled: (i) Sales daybook. (ii) Return inward day book. (iii) Debit/credit notes. (iv) Cash book.