OxfordAQA IGCSE Accounting: Trade payables and trade receivables control accounts (9215) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover the control accounts content of section 3.2 (Verification of accounting records) of the OxfordAQA International GCSE Accounting (9215) specification, version 1.2. All amounts are in dollars. Learn the content first from the study guide and the revision notes. The wider topic is covered by the Topic 2 practice set. Course links: OxfordAQA IGCSE Accounting hub, checklist and free diagnostics.

Questions

1. State two purposes of a trade receivables ledger control account. [2]

2. State whether each of the following is entered on the debit side or the credit side of a trade receivables ledger control account. [3]

• interest charged on an overdue customer account
• a contra entry with the payables ledger
• a customer’s cheque returned unpaid by the bank

3. Explain why a control account is described as a memorandum record, and state one type of transaction that is left out of a trade receivables ledger control account. [4]

4. Dalbury Wholesale began April with trade receivables of 9,600 (all debit balances). During April: credit sales were 27,450; money received from customers was 24,300; cash discount allowed was 410; sales returns were 880; and irrecoverable debts of 300 were written off. Prepare the trade receivables ledger control account for April, showing the closing balance. [6]

5. Merriby Tiles owed its trade payables 6,850 at the start of May. During May it paid suppliers 19,240, received cash discount of 380 and returned goods worth 720. At the end of May it owed trade payables 7,210. There were no other items. Calculate the credit purchases for May, showing the trade payables ledger control account. [5]

6. At the end of a month a trade receivables ledger control account shows debit balances of 14,200 carried down. Credit balances in the receivables ledger of 380 are also carried down.

(a) Explain how a credit balance can arise in the receivables ledger. [2] (b) State on which side of the control account the credit balances are carried down. [1] (c) Calculate the net amount owed by customers. [1]

7. Explain how a debit balance can arise in the trade payables ledger, and state the side of the trade payables ledger control account on which closing debit balances are carried down. [3]

8. A trade receivables ledger control account shows closing debit balances of 18,900. The list of balances from the receivables ledger totals 18,330.

(a) State the difference and which figure is higher. [1] (b) Give two possible causes of the difference, one in the ledger and one in the control account. [2] (c) Explain why the control account cannot show which customer’s account contains the error. [1] (d) Give one error that the comparison would not reveal. [1]

9. Thistleby Bearings owes the business 2,650 and appears in the receivables ledger. The business owes Thistleby Bearings 3,100 and it appears in the payables ledger.

(a) State the amount of the contra entry. [1] (b) Write the general journal entry for the contra, naming the ledgers. [2] (c) State the amount still owed to Thistleby Bearings after the contra. [1]

10. Ludlow Cycles began June with trade receivables debit balances of 23,500 and credit balances of 410. During June: credit sales were 84,200; a customer’s cheque for 1,150 was dishonoured; interest of 275 was charged on overdue accounts; money received from customers was 79,600; cash discount allowed was 1,420; sales returns were 2,980; irrecoverable debts written off were 850; and a contra entry of 1,300 was made with the payables ledger. At the end of June, customer credit balances were 520.

(a) Prepare the trade receivables ledger control account for June, showing the closing debit balances. [7] (b) The list of customer debit balances totals 23,265. State the difference, suggest one possible cause and state what should be checked next. [3]

11. Petherick Foods began July owing suppliers 15,600 (credit balances). One supplier had been overpaid by 220 (debit balance). During July: credit purchases were 52,300; a supplier charged 160 interest on an overdue account; payments to suppliers were 47,850; cash discount received was 1,090; purchases returns were 2,210; and a contra entry of 1,300 was made with the receivables ledger. At the end of July, debit balances in the payables ledger were 340.

(a) Prepare the trade payables ledger control account for July, showing the closing credit balances. [6] (b) The list of supplier credit balances totals 15,460. State the difference, suggest one possible cause and state one check you would make. [3]

Answers

1. It gives a single summary of the total owed by all credit customers [1]. It checks the accuracy of the receivables ledger, because its balance should agree with the total of the individual balances [1]. [2] Examiner insight: Two distinct purposes are needed; rewording the first does not add a second.

2. Interest charged on an overdue account: debit [1]. Contra entry: credit [1]. Dishonoured cheque: debit [1]. [3] Examiner insight: A one-word side for each item is sufficient; a reason is not needed, but a wrong side cannot be rescued by a correct reason.

3. A memorandum record is not part of the double-entry system [1]. The real entries are in the individual customer accounts [1]. The control account is used to check those accounts [1]. Cash sales are left out because they do not pass through a customer account [1]. [4] Examiner insight: Answers gain credit when they say what the account is not (part of the double entry) as well as what it is used for.

4.

Trade receivables ledger control account - Dalbury Wholesale
Balance b/d      9,600   Bank                   24,300
Credit sales    27,450   Cash discount allowed     410
                         Sales returns             880
                         Irrecoverable debts       300
                         Balance c/d            11,160
                -------                         -------
                37,050                          37,050

Opening balance and credit sales on the debit side [1]; money received on the credit side [1]; cash discount allowed on the credit side [1]; sales returns on the credit side [1]; irrecoverable debts on the credit side [1]; closing balance 11,160 found as the balancing figure [1]. [6] Examiner insight: A heading naming the ledger and matching totals on both sides make working easy to follow.

5. Debit side of the payables control account: payments 19,240 + discount received 380 + purchases returns 720 + balance c/d 7,210 = 27,550 [1]. The opening balance of 6,850 is on the credit side [1]. Credit purchases are the balancing figure on the credit side: 27,550 - 6,850 = 20,700 [1].

Trade payables ledger control account - Merriby Tiles
Bank                  19,240   Balance b/d          6,850
Cash discount received   380   Credit purchases    20,700
Purchases returns        720
Balance c/d            7,210
                      -------                     -------
                      27,550                      27,550

Items on correct sides [1]; both totals equal 27,550 [1]. [5] Examiner insight: A balancing figure is easier to credit when both sides are totalled, because the total shows how the figure was found.

6. (a) A customer may have paid more than was owed [1], or may have returned goods after paying for them [1]. [2] (b) The debit side [1]. [1] (c) 14,200 - 380 = 13,820 [1]. [1] Examiner insight: A credit balance is money the business owes, so explanations that describe the customer as owing money tend to be treated as the wrong way round.

7. A debit balance arises when a supplier has been overpaid [1], or when goods were returned to a supplier after the invoice had been paid [1]. Closing debit balances are carried down on the credit side [1]. [3] Examiner insight: Give the explanation and the side separately.

8. (a) The difference is 570, and the control account figure is higher [1]. [1] (b) Ledger: a sales invoice for 570 was not posted to a customer’s account [1]. Control account: the sales journal total was overcast by 570 [1]. [2] (c) The control account holds only totals, not figures for individual customers [1]. [1] (d) For example, a receipt posted to the wrong customer’s account, which leaves the total unchanged [1]. [1] Examiner insight: Causes that would produce exactly the stated difference are generally more convincing than general statements that mistakes were made.

9. (a) The contra is the smaller of the two amounts, 2,650 [1]. [1] (b) Debit Thistleby Bearings in the payables ledger 2,650 [1]. Credit Thistleby Bearings in the receivables ledger 2,650 [1]. [2] (c) 3,100 - 2,650 = 450 [1]. [1] Examiner insight: The journal needs both ledgers named, because the same trader has an account in each.

10. (a)

Trade receivables ledger control account - Ludlow Cycles
Balance b/d (debit balances)  23,500   Balance b/d (credit balances)    410
Credit sales                  84,200   Bank                          79,600
Dishonoured cheque             1,150   Cash discount allowed          1,420
Interest on overdue accounts     275   Sales returns                  2,980
Balance c/d (credit balances)    520   Irrecoverable debts              850
                                       Contra: payables ledger        1,300
                                       Balance c/d (debit balances)  23,085
                              -------                               -------
                              109,645                               109,645

Opening debit balances on the debit side [1]; opening credit balances on the credit side [1]; credit sales, dishonoured cheque and interest on the debit side [1]; bank, discount allowed and sales returns on the credit side [1]; irrecoverable debts and contra on the credit side [1]; closing credit balances carried down on the debit side [1]; closing debit balances 23,085 as the balancing figure [1]. [7] (b) The difference is 180, with the list higher [1]. A possible cause is a receipt of 180 recorded in the cash book but not posted to the customer’s account [1]. Check the postings from the cash book and re-add the list of balances [1]. [3] Examiner insight: Working down the list of items in order, and ticking each one off, helps you avoid leaving one out.

11. (a)

Trade payables ledger control account - Petherick Foods
Balance b/d (debit balances)    220   Balance b/d (credit balances) 15,600
Bank                         47,850   Credit purchases              52,300
Cash discount received        1,090   Interest on overdue accounts     160
Purchases returns             2,210   Balance c/d (debit balances)     340
Contra: receivables ledger    1,300
Balance c/d (credit balances) 15,730
                             -------                               -------
                              68,400                                68,400

Opening credit balances on the credit side [1]; opening debit balances on the debit side [1]; credit purchases and interest on the credit side [1]; payments, discount and returns on the debit side [1]; contra on the debit side and closing debit balances carried down on the credit side [1]; closing credit balances 15,730 as the balancing figure [1]. [6] (b) The difference is 270, with the list lower [1]. A possible cause is a purchase invoice for 270 not posted to a supplier’s account [1]. One check is to compare the purchases journal postings with the individual supplier accounts [1]. [3] Examiner insight: Interest charged by a supplier increases what you owe, so it belongs on the credit side; check each item against that reasoning.

Where marks are usually lost

• Putting entries on the wrong side because the receivables and payables control accounts are mirror images.
• Leaving out credit balances in the receivables ledger or debit balances in the payables ledger.
• Showing the contra in only one control account.
• Entering a dishonoured cheque as a credit.
• Not showing the closing balance as the balancing figure with both sides totalled.
• Including cash sales or cash purchases.

Next steps

• Review the control accounts revision notes
• Reread the control accounts study guide
• Visit the course hub and the checklist
• Take a free diagnostic
• Book a free trial class

Frequently asked questions

How do you approach a control account question in OxfordAQA IGCSE Accounting 9215? Decide first whether it is a receivables or a payables control account, write the opening balances on the correct side, then post each total from the question before finding the closing balance as the balancing figure. Labelling every entry clearly helps the marker award each line.

Which section of the OxfordAQA 9215 specification covers control accounts? Trade receivables and trade payables ledger control accounts are part of section 3.2, Verification of accounting records, alongside the trial balance and the bank reconciliation statement.

Why should you label every entry in a control account answer? Each line of a control account is usually a separate total from the question, so naming every entry and showing its amount lets each correct line be credited even if the closing balance is wrong. It also makes it easier to spot an item placed on the wrong side.

What is a contra entry in control accounts? A contra entry sets off an amount a trader owes the business against an amount the business owes the same trader. It is recorded in the general journal and then in both control accounts, reducing the balances on each.

Official syllabus

These questions are based on the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, section 3.2, Verification of accounting records, published by OxfordAQA.