Chapter 10

Question 1

What do control accounts contain?

Answer 1

Summarise totals of all the individual transactions affecting their respective ledgers they contain the same information as he subsidiary receivable and payable ledger however they show totals rather than individual trans

Question 2

Define pays ledger control account reconciliation

Answer 2

And exercise which agrees the balance on the payables ledger control account to the total of the list of balances in the payable ledger

Question 3

How is a prompt payment discount recorded when a credit customer takes advantage?

Answer 3

Debit discount allowed in VAT and credit rlca

Question 4

Define a contra entry

Answer 4

An amount owed by a customer which says set off against an amount owed to the customer as a supplier

Question 5

How is contra recorded?

Answer 5

Debit PLCA and credit RL CA

Question 6

Does the subsidiary accounts need to be updated for the contra entry?

Answer 6

Yes

Question 7

Define payroll

Answer 7

Payments to employees in respect of salaries and wages