O-LevelAccountingAccounting procedures7707/12 · May/June 2014 · Q141 Mark
A purchases ledger control account includes interest charged by a supplier on an overdue account and a contra entry to a sales ledger control account. Where will these items appear in the purchases ledger control account? interest charged on overdue account contra entry to sales ledger control account debit credit debit credit A ✓ ✓ B ✓ ✓ C ✓ ✓ D ✓ ✓
Ainterest charged on overdue account: credit, contra entry to sales ledger control account: debit
Binterest charged on overdue account: debit, contra entry to sales ledger control account: credit
Cinterest charged on overdue account: debit, contra entry to sales ledger control account: debit
Dinterest charged on overdue account: credit, contra entry to sales ledger control account: credit
✓ Correct answer
C: interest charged on overdue account: debit, contra entry to sales ledger control account: debit
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