IAC Dec 2008 exam problem

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Olka
Olka Registered Posts: 2 New contributor 🐸
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Hi, Can somebody help me with couple of questions from IAC Dec 2008 exam? 1)In Task 1.6 on the table we have twice Purchases Ledger Control Acc, but I have just wondering that is on wrong side?? Should be on CR side,I think, but on answers is on DR-I don't understand why? 2)Task 1.9 c) Why on Suspense Acc is tick CR side, when in questions we have information that Suspense Acc has got DR balance? 3)Task 2.17 I don't know how is calculate the balance of debtors in point b)? And why balance of debtors in this same task point a) in on DR side? 4) Task 2.18 What has happen with cheque nr 110865 which amount 3,670. This amount should be updated in cash book on CR side, and then balances per cash will be different (13,568). Am I right? Thank you for answers - this couple of questions I am confused. Thank you for explanations.

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  • hanapospis
    hanapospis Registered Posts: 111 Dedicated contributor 🦉
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    Hi Olka,

    I will try to help you.

    1.6
    The purchase ledger control has entries on the debit site because you paid money to the suppliers (decrease liabilities):

    If you purchase a goods the entries are:

    Purchases – DR
    VAT - DR
    Purchases ledger control CR (liabilities)

    When you pay for the goods your entries are
    Purchase ledger control – DR
    Bank – CR

    1.9
    You have DR balance of 118 on suspense account (mistake has been made so you put the different on the suspense account to balance your TB)
    Now the mistake has been discovered:
    So you have to put the 118 on CR to get zero balance on Suspense account

    Discount allowed omitted – 388 DR
    Bank 270 (299-29) – CR
    Suspense account 118 CR

    2.17

    Balance of Debtors – DR
    Good sold on credit – DR
    Receipts from credit customers – CR
    Discount allowed – CR
    Contra entry - CR

    48125+37008-28327-240-2316 = 54250

    2.18

    You need to balance your CB and bank statement first.
    In you CB you have balance b/f of 5466 but in your bank statement you have balance of 9136 the difference is 3670 – so you must have input this cheque in your CB in October - the reason why you have a balance of you CB 5466 (9136-3670). So you need to account for this.
    Then you can make the reconciliation.

    Hope this will help. I am not very good at explaining things.

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