Accounting 9706 · AS & A Level · Reconciliation and verification
Reconciliation and verification — practice question
Delph began trading on 1 July 2016. For the year ending 30 June 2017, he gave details about his sales and purchases.
(a)[4]
Explain two advantages of using control accounts.
(b)[5]
Prepare the amended sales ledger control account as at 30 June 2017.
(c)[5]
Prepare the purchases ledger control account for the year ending 30 June 2017.
(d)[9]
Prepare the statement of financial position at 30 June 2017.
(e)[7]
Advise Delph whether his business is more profitable than Nadia’s business or not. Justify your answer.
Worked solution & mark scheme
This 30-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Allow totals for trade payables and trade receivables to be extracted quickly for the trial balance and financial statements” …