Accounting 0452 · IGCSE · Control accounts

Control accounts — practice question

GHB Limited keeps a complete set of accounting records and draws up monthly control accounts. The information below relates to November 2019. Purchases ledger control account balance at 1 November $ ? Totals for November: Purchases journal $14 200 Purchases returns journal $1 160 Cash purchases $5 390 Commission receivable $2 110 Cash discount received $650 Cash discount allowed $710 Cheques paid to trade payables $11 420 Sales ledger contras $250 Interest charged by trade payables $95 Cheque refunds from trade payables $330 Purchases ledger control account balance at 30 November $13 195
(a)[9]

Prepare the purchases ledger control account for GHB Limited for November 2019. Balance the account on 30 November 2019 and carry the balance down on 1 December 2019.

(b)[2]

State two reasons why the purchase of the delivery vehicle was not entered in the purchases ledger control account.

(c(i))[1]

State the most suitable depreciation method for the new delivery vehicle.

(c(ii))[3]

State three reasons that support your answer to (c)(i).

(d)[5]

Advise the directors which of these two finance methods is more suitable. Support your view with one advantage and one disadvantage of each alternative.

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