Observation

The 1(a) and 1(b) aspect of the question on control account candidates gained reasonable marks as they were able to provide some reasonable answers to the question. Thus, candidates who attempted this question performed fairly.  However, candidate mixed up their responses in 1(c) as they could not adequately separate items on the debit side of purchases ledger control account from that of  the sales ledger control account.

Some of the expected responses were:

1. (a)       Books of account from which entries are made into control accounts:

• Sales Day Book or Sales Journal or Sales Book;
• Purchases Day Book or Purchases Journal or Purchases Book;
• Returns Inwards Book or Sales Returns Journal;
• Returns Outwards Book or Purchases Returns Journal;
• Cash book;
• Petty cash book;
• General Journal or Journal Proper;
• Bills Payable Book;
• Bills Receivable Book;
• General Ledger.

                                                                                                           
 (b)       Uses of Control Accounts
                        They are used to:

1. locate errors easily;
2. check the work performed by the accounts clerks;
3. show the arithmetical accuracy of the individual accounts in the ledgers;
4. prepare interim accounts;
5. group homogenous accounts;
6. detect missing figures;
7. ascertain total debtors balances;
8. ascertain total creditors balances;
9. provide a means for preventing fraudulent practices;
10. aid in the preparation of final accounts;
11. enhance internal control;
12. set off account (contra entry);
13. ascertain total credit sales;
14. ascertain total credit purchases.

1 (c) (i)        Items recorded on the debit side of Purchases Ledger Control Account:

• Balance b/for Opening debit balance;
• Set offs or transfers to sales ledger;
• Bills payable;
• Discount received;
• Cash paid to suppliers;
• Cheque paid to suppliers
• Credit transfer to suppliers or credit notes received;
• Returns outwards;
• Balance c/d (closing balance).

(ii)        Items recorded on the debit side of Sales Ledger Control Account:

• Balance b/for Opening balance of debtors;
• Bad debts recovered;
• Credit sales;
• Interest charged on overdue accounts;
• Dishonoured cheques;
• Refund to customers;
• Balance c/d;
• Debit notes issued;
• Discount disallowed;
• Bills receivable dishonoured;
• Noting charges.