Moe runs a trading business and maintains control accounts as a part of the double entry. The following information is available for the month of November 2024. Balance of sales ledger control account at 1 November 2024 $ 18320 Contra entry with purchases ledger control account 139 Credit sales 41735 Discounts allowed 3071 Interest charged on overdue accounts 84 Irrecoverable debt written off 478 Receipts from credit customers 39202 Sales returns 883

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2025). The mark or mark type is shown in brackets.

1. [5] (a) Prepare the sales ledger control account for November 2024. Dates are not required. Sales ledger control account $ $ Balance b/d 18 320 Purchases ledger 139 (1) all control/Contra Sales 41 735 (1) Sales returns 883 Interest 84 (1) Irrecoverable 478 (received) debts Bank 39 202 (1) both Discounts allowed 3071 Balance c/d 16 366 60 139 60 139 Balance b/d 16 366 (1) OF
2. [3] (b)(i) Calculate the corrected figure for: the total of balances in the sales ledger Corrected total of balances in sales ledger $ Original total 22 350 Less overstated balance (189) (1) Add dishonoured cheque 640 (1) Corrected total 22 801 (1)OF
3. [5] (b)(ii) Calculate the corrected figure for: The sales ledger control account balance $ original sales ledger control 23 964 account balance Less sales returns (330) (1) Less discounts allowed (283) (1) Add dishonoured cheque 640 (1) Less irrecoverable debt (1 190) (1) Corrected balance 22 801 (1)
4. [2] (c) State two benefits of preparing control accounts. Check the arithmetical accuracy of the double entry OR ledger accounts (1) Helps to locate errors or indicates errors (1) Helps to prevent/reduce fraud (1) Provides easily accessible information for management (1) Provides information for entry in financial statements OR finds totals for trade receivables OR finds totals for trade payables (1) Improves internal control (1) Max 2 Accept other valid responses