WAEC Accounting 2013 Theory — Question 2

Model answer

(a) Control accounts: This can be defined as an account of totals of individual ledgers i.e. it records the total of individual ledgers to check for fraud. It can be sales control account or purchases control account. (b) Items that will appear on debit side of purchases ledger control account: (i) Cash payment to suppliers (ii) Cheques given to suppliers (iii) Return outward (iv) Discount allowed (v) Contra entries against sales ledger control account (vi) Bills payable (vii) Credit note received from supplier. (c) Sources for compiling purchases ledger control account: (i) Purchases day book (ii) Return outward daybook (iii) Cashbook (iv) Credit note.