Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Meena did not maintain complete accounting records. She was told to keep her books of account by using the double entry system.
(a)[3]

State three benefits a business obtains from keeping a double entry book-keeping system.

(b)[6]

Prepare a reconciliation between the sales ledger control account and the sales ledger balances as at 31 January.

(c)[3]

State three reasons why a customer’s account might have a credit balance in the sales ledger.

(d)[3]

Meena is thinking about charging interest on the full account balances of customers who fail to pay on time. Advise Meena whether she should or should not adopt this policy. Justify your answer.

Worked solution & mark scheme

This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: Uses trial balance and control accounts to check transactions

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