1

BGCSE ACCOUNTING
Questions from past examinations papers
Bgcse and igcse
Module 1: Payroll accounting
Module 2: trial balance,correction of
error,bank reconciliation and control
accounts

With practice in Accounting A* IS AUTOMATIC

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PAYROLL ACCOUNTING
CLASS EXERCISE 1 (2017 bgcse PP2)
Bakang is an empleyee of Tiro Monare,a farmer and she is paid a basic wage of P10
per hour for 36 hours a [Link] hours worked in excess of this are paid at time and
half but any hours worked on Sunday are paid double time.
During the week ended 24 August 2017,Bakang worked a total of 48 hours,including
4 hours on Sunday.
The following deductions were to be made from her gross pay.
Income tax 20% of earnings in excess of P100
Health and insurance 10% of gross wage
Pension contribution P20
Trade union subscription P5
(a) Explain the difference between the following pairs of terms.
(i) Statutory deductions and voluntary deductions (2)
(ii) Clock card and time sheet. (2)
REQUIRED: Prepare a payslip for Bakang Ntwagae for the week ended 24 August
2017.

CLASS EXERCISE 2 (2018 bgcse PP2)

Mason, Sello and Tebby are employees at XYZ Limited, a brick moulding company.
The following information was provided for the month ended 31 July 2018.
1. Mason, Sello and Tebby are paid P20 every 400 units produced or mininum
monthly wage of P800.00, whichever is higher.
2. Mason produced 50 000 units, Tebby 48 000 units and Sello 95 000 units
3. Income tax on employees gross pay is calculated as follows:
Income tax on gross pay from P0 to P3000 at 0%
Income tax on gross pay from P3001 to P5000 at 20%
Income tax on gross pay from 5001 to 10 000 at 25%
Deductions for the month were as follows:
1. Pension fund contributions at the rate of 10% of the groos pay for each employee.
2. Mason donated P80 SOS charity
3. Tebby paid a subscription of P140 to trade union and P100 to T and T insurance
for motor vehicle.
(a) Calculate the net pay for Mason, Tebby and Sello for the month ended 31 July
2018.
(i) Mason (3)
(ii) Tebby (3)
(iii) Sello (4)
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CLASS EXERCISE 3 (2023 bgcse PP1)

Lorato pays her employees a basic wage of P10 per hour for 42 hours a week. Any
hours worked in excess of the 42 hours are paid time and half. Any hours worked on
sundays are paid double time.
(a) State the difference between time rate and piece rate. (2)
(b) State the difference between clock card and a time sheet (2)

Kgosi is the only employee of Lorato’s business. During the week ended 7
September 2023 he worked for total of 54 hours, including 6 hours on Sunday.
The following deductions were made from his gross pay.
Income tax 15% of earning in excess of P130
Medical aid contribution 10% of gross wage
Pension contribution P25
Trade union subscription P10
(c) Complete Kgosi’s payslip for the week ended 7 September 2023. (9)
(d) State one example of a statutory deductions and one example of voluntary
deductions from Kgosi Pay slip. (2)

CLASS EXERCISE 4 (2021 bgcse PP1)

Thabang and Pontsho are partners in a construction business. They undertook all the
work themselves until 6 September 2021 when they hired an employee, chedza.
(a) State the difference between the following:
(i) Wages sheet and payslip
(ii) Time rate and piece rate
(iii) Statutory deductions and voluntary deductions (6)
Chedza, employee of Thabang and Pontsho is paid at the rate of P20 per [Link]
normal working week is 45 hours. Overtime is paid at the rate of time and a half for
Saturdays and double time on sundays.
During the week ended 26 September 2021 chedza worked a total of 51 hours,
including 2 hours worked on Saturday and 4 hours on Sunday.
Amounts to be deducted from his gross pay for that week were:
Income tax 5% of earnings in excess of P750
PK insurance contribution 2 % of gross wage
Trade union subscription P11
Funeral society subscription P20
(b) calculate chedza net pay for the week ended 26 September 2021
Show your workings. (8)
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CLASS EXERCISE 5(2015 bgcse PP2)

Anansi practices mixed [Link] grows crops and keep [Link] is an
employee of Anansi farm planting [Link] is paid P10 for every 100
seedlings planted.
During the month ended 30 September [Link] planted 50 000 seedlings.
The following additional information was available.
1. Income tax is charged at at 5 %
[Link] aid contributions are charged at 10% of the gross pay
3.A contribution of P160 per month is made to Burial society.
(a) Calculate the net pay for Sebeko for the month of September [Link] your
workings.(4)
(b) Explain the following terms as used in [Link] one example in each case
(I) statutory deductions
(ii) voluntary deductions (4)
(c) Name two documents used in processing payroll (2)
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MODULE 2
LEARNING OUTCOME 2.1 DEMOSTRATE UNDERSTANDING OF TRIAL BALANCE
CLASS EXERCISE 1 (IGCSE PAPER 2 ,2003)
Danbi Wyske provided the following information on 30 April 2003
P
Inventory 1 May 2002 4 000
Sales 80 000
Purchases 62 000
Trade receivables 10 000
Trade payables 9 000
Electrecity 3 000
General expenses 7 000
Cash at bank 5 000
Drawings 8 000
Equipment at cost 45 000
Provision for depreciation of equipment 16 000
Rent and insurance paid 6 000
Capital 45 000

(a) Prepare Danbi Wyske’s Trial balance at 30 April 2003 (15)

CLASS EXERCISE 2 (BGCSE ACCOUNTING BOOKLET BY APPIAH)

M Bashi’s provided the following information on 31 December 2016

P
Motor vehicles 38 000
Provision for depreciation 10 000
Sales 190 000
Purchases 103 000
Rent 4 000
Wages and salaries 41 000
Sundry expenses 6 800
Drawings 23 000
Trade payables 5 000
Trade receivables 7000
Bank overdraft 1500
Cash 100
Purchase returns 600
Inventory 12000
Capital ?
(i) Use the balances above to prepare trial balance (10)
(ii) Give the date which the inventory in the trial balance relates. (1)

CLASS EXERCISE 3 (2023 bgcse PP2 )

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Bonno prepares a trial balance at the end of each financial year on 31 August .
(a) State the meaning of a trial balance (1)
(b) State two reasons why Bonno prepares a trial balance (2)

Bonno provide the following information on 31 August 2023

P
Fixtures and fittings 25 000
Provision for depreciation of fixtures and fittings 5 000
Revenue 125 000
Returns inwards 12 667
Purchases 89 800
Returns outwards 3 100
Drawings 8 700
Cash at bank 10 500
Inventory 1 September 2022 21 650
Inventory 31 August 2023 14 950
Rent paid 8 500
Wages and salaries 18 123
Bad debt recovered 4 200
Other operating expenses 15 100
Provision for doubtful debts 545
Trade receivables 26 200
Trade payables 12 630
Capital ?

(c) Prepare Bonno’ s Trial balance at 31 August 2023. (9)

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LEARNING OUTCOME 2.2 DEMOSTRATE UNDERSTANDING OF ERROS AND THEIR

TREATMENT IN THE LEDGER ACCOUNTS.
CLASS EXERCISE 1(2019 bgcse PP2)
Boitshepo is a trader. Her financial year ends on 30 September
The totals of her trial balance on 30 September 2019 agreed and her draft financial
statements had been prepared. The draft profit for the year was P17 500.
The following errors were later discovered.
1. Cash, P450, received from a credit customer, Mogomotsi, had been credited to
Mogotsi, another credit customer.
2. No entry had been made for wages, P850, paid by cheque.
3. Furniture, P5600, bought on credit, had been correctly entered in the suppliers
account but debited to the furniture repairs account.
4. Goods, P320, taken by Boitshepo for own use, had been entered in the books as
P32.
5. The returns inwards account had been over-cast by P150 and rent account been
under-cast by P150.
(a) State four types of errors which may not be revealed by the trial balance prepared by
Boitshepo. (4)
(b) Prepare the necessary journal entries to correct the errors [Link] are not
required. (10)
(c) Prepare the statement to show Boitshepo’s corrected profit for the year ended 30
September 2019. (6)
On 1 October 2019, Boitshepo prepared a trial balance and opened a suspense account
(d) State two reasons why Boitshepo opened a suspense account. (2)
(e) State three types of errors which may be revealed by a trial balance prepared by
Boitshepo. (3)

CLASS EXERCISE 2 (2022 bgcse PP2)

Keneilwe is a trader. She maintains a full set of Accounting records. Her financial year
ends on 30 September .On 30 september 2022, she opened a suspense account.
(a) State two reasons why it was necessary for Keneilwe to open a suspense account
Keneilwe discovered the following errors had been made in her books of accounts
1. Credit purchases from Ck supplies P6500,had been credited to the account of Kc
supplies
2. Keneilwe spent P80 of her personal funds to pay for business travelling [Link]
had not been recorded in the books
3. P1500 withdrawn from the bank for repairs to office equipment had been debited to
office equipment account.
4. A cheque for P2100 received from Kabo had been debited to the account of Kabo and
credited to the bank account
5. The purchases of stationery by cash, P210, was recorded in the books as P120.
6. The total of discount received column in the cashbook, P80, had not been transferred
to the discount received account in the ledger.
(b) State the type of errors made in 1-3 (3)
(c) State one error from 1-6 which is affected the balancing of trial balance. (2)
(d) Prepare journal entries to correct errors 1 -5. Narratives are not required. (10)
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CLASS EXERCISE 3 (IGCSE )

(a) State two reasons why a trial balance is prepared
(b) Name two types of error which are not revealed by a trial balance.
Ame provided the following balances from his books at 31 March 2020. show any difference in the
trial balance to suspense account.
P
Capital 10 369
Drawings 4 000
Equipment at cost 15 500
Provision for depreciation of equipment 3 100
Inventory( 1 April 2019) 1 765
Trade receivables 1 290
Bank overdraft 475
Trade payables 1 600
Sales 31 250
Purchases 18 330
Purchase returns 910
Carriage inwards 640
Discount received 815
Commission receivable 1 500
Rent and insurance 5 700
Office expenses 2 425

REQUIRED:
(a) Prepare Ame’s trial balance at 31 March 2020
Ame later discovered that the following errors had been made in the accounting records
1. No entry had been made for cash sales, P60
2. Office expenses, P240 had been credited to the wages account, no debit entry had been
made.
3. The purchase journal total for March 2020 was [Link] amount was incorrectly recorded
in the purchase account as P2651
4. An insurance payment, P375, had been correctly recorded in the cash book but no entry had
been made
5. The purchase of equipment, P800, was correctly recorded in the cash book but debited to
the office expenses account.
(c) Use the journal entries to correct the errors. Narration is not required
(d) Prepare suspense account
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CLASS EXERCISE 4 (IGCSE paper 2 2023)

Amadi prepared the following trial balance which is not yet totalled and coontains erros .

AME
TRIAL BALANCE AS AT 30 SEPTEMBER 2020
Debit Credit
(P) (P)
Capital 20 000
Drawings 9 500
Equipment at cost
Provision for depreciation of fittings and equipment 7 500
Inventory (1 April 2022) 3752
Inventory 31 March 2023 3965
Trade receivables 6 100
Bank overdraft 3 106
Trade payables 3485
Sales 73 250
Purchases 41 785
Returns inwards 3 390
Carriage inwards 1223
Discount received 1990
General expenses 6430
Rent and rates 7380

Required: Prepare corrected trial balance at 31 March 2023. Show any difference between debit
and credit totals as suspense. (6)
Amadi discovered the following errors.
1. General expenses account had been undercast by P200
2. A rent payment ,P516 had been posted to to the rent and rates account as P615.
3. The total for discount received in the cash book for February 2023, P165 had been debited to
the drawings account. No other entry for this total had been made
(b) Prepare suspense account (5)
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CLASS EXERCISE 5( BGCSE PP2 2017)

The following balances were taken from the books of [Link], a sole proprietor, on 30
September 2017.
The following balances were taken from the books of Gofaone, a sole proprietor, on
30 September 2017
P
Inventory 1 October 2016 16 750
Revenue 151 100
Purchases 98 750
Machinery at book value 54 000
Office Furniture 17 000
Trade Receivables 11 300
Provision for doubtful debts 560
Trade Payables 7 698
Rent 24 000
Insurance 16 600
General Expenses 12 400
Cash 1 558
Capital 96 000
Drawings 15 600

(a) Prepare T Mosweu’s Trial Balance at 30 September 2017, showing any difference
you find as a balance on a suspense account. (10)
Despite the totals of Gofaone not balancing Gofaone prepared a draft income statement.
The following errors were later discovered.
i. Goods bought for resale P520, had been debited to the cash account and credited to
the purchases account
ii. The purchase of machine by cheque P1020, had been debited to both the bank and
the machinery account
iii. The bank overdraft P10 560 had been omitted from the trial balance.
(b) Prepare the suspense account in Gofaone’s ledger to show the required entries. Start
with the balances arising from the difference on the trial balance.
(c) State one of the errors 1-3 that will not affect the balancing of the trial balance (1)
(d) State and explain the effect of correcting error 1 and 2 on T mosweu’s draft profit for the
year. (6)
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CLASS EXERCISE 6( BGCSE REVISION BOOKLET)

Lerroy prepared a trial balance at 30 September 2019 and did not balance by P1026 on the debit
side.A suspense account was created. He then discovered the following errors.
1. Sales on credit worth P200 to Gaolathe were debited to Gaolathe’s account as P220.
2. Sales journal overcast by P300
3. Lame, a debtor’s account was overcast by P24.
4. A purchase of goods on credit from Mogae, worth P500 credited to both purchases and
Mogae’s account.
5. A cheque worth P230 was received from credit customer and was entered in to the cash
book but no entry was made in the customer’s account.
6. Credit sales to Sedimo worth P450 were debited to Sodomo’s account.
7. Purchase of goods worth P300 by cheque was both entered as P320

Required:
(a) State which two of these errors did not affect the balancing of the trial balance and in each
case names the type of error which occurred.
(b) Prepare journal entries to correct all seven errors. Narratives are required.
Record in the journal
(c) Prepare Lerroy Suspense account

CLASS EXERCISE 7 (BGCSE ACCOUNTING REVISION BOOKLET)

Pitso’s financial year ends on 31 October. The total of the trial balance prepared on 31 October
2019 failed to agree. The difference of P260 was a shortage on the debit side.
This was entered in the suspense account.
The following errors were later discovered.
1. The purchases account had been overcast by P110
2. No entry had been made for office expenses, P20, paid in cash
3. Credit sales P630 to Asego had been correctly entered in the sales account but debited as
P360 in Asego’s account.
4. Capital introduced by Pitso, P5000 (paid into the bank), had been debited to the capital
account and credited to the bank.
5. A cheques, P200 , received from a trade receivable, Tsitsi , had been correctly entered in the
bank account, but no other entry had been made.
6. Sales returns , P150, had been correctly entered in the trade receivable’s account but had
been credited to the purchases returns account.
(a) Prepare the journal entries to correct the above errors
(b) Write up the suspense account of Pitso.
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CLASS EXERCISE 8 (bgcse accounting revision booklet )

Boitshepo is a trader. Her financial year ends on 30 September
The totals of her trial balance on 30 September 2019 agreed and her draft financial
statements had been prepared. The draft profit for the year was P17 500.
The following errors were later discovered.
1 Cash, P450, received from a credit customer, Mogomotsi, had been credited to Mogotsi,
another credit customer.
2 No entry had been made for wages, P850, paid by cheque.
3 Furniture, P5600, bought on credit, had been correctly entered in the suppliers account
but debited to the furniture repairs account.
4 Goods, P320, taken by Boitshepo for own use, had been entered in the books as P32.
5 The returns inwards account had been over-cast by P150 and rent account been under-
cast by P150.
(a) State four types of errors which may not be revealed by the trial balance prepared
by Boitshepo.
(b) Prepare the necessary journal entries to correct the errors [Link] are not
required.
(c) Prepare the statement to show Boitshepo’s corrected profit for the year ended 30
September 2019.
On 1 October 2019, Boitshepo prepared a trial balance and opened a suspense
account
(d) State two reasons why Boitshepo opened a suspense account.
(e) State three types of errors which may be revealed by a trial balance prepared by
Boitshepo.
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Learning outcome 2.3 DEMOSTRATE THE SKILL OF PREPARING BANK RECONCILIATION

STATEMENTS

CLASS EXERCISE 1 (BGCSE 2002)

TSWANA MEAT PRODUCTS BANK STATEMENT
Date Details [Link] Debit(P) Credit (P) Balance(P)
2002
Nov 1 Balance b/d 1990 Cr
1 Cheque 02599 230 1760 Cr
4 Cheque 02601 500 1260 Cr
6 Lodgement 580 1840 Cr
10 Cheque 02600 340 1500 Cr
16 Cheque 02603 69 1431 Cr
17 Lodgement 320 1751 Cr
18 Cheque 02602 322 1429 Cr
23 Cheque 02607 185 1244 Cr
27 Lodgement 270 1514 Cr
28 Dividends 140 1654 Cr
29 Standing ord 243 1411 Cr
29 Bank charges 15 1396 Cr

TSWANA MEAT PRODUCTS

CASHBOOK
Date Details P Date Details Chq No P
2002 2002
Nov 1 Balance b/d 1760 Nov 1 KIC 02600 340
3 Cash sales 580 2 BCL insurance 02601 500
16 Lesego 320 10 Kamal & Co. Ltd 02602 322
18 Cash sales 270 14 Wages 02603 69
24 Motsumi(Pty)Lt 650 22 Cash 02604 185
d 25 Purchases 02605 1500
25 Simba Ltd 02606 600
27 Li Mad Ltd 02607 542

(a) Update and balance the cash book (6)

(b) Prepare the statement reconciling the updated cash book with the bank (9)
(c) Give any three reasons why the balance in the cash book may differ with the balance
in the bank statement (3)
(d) What will be the figure for cash at bank which will be shown in the statement of
financial position for 30 September 2002?(1)
(e) Under which section of the statement of financial position will be up-dated cash
book balance shown?
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CLASS EXERCISE( BGCESE 2008)

Cash book (bank column)
Date Details Bank(P) Date Details Cheq .No Bank(P)
2008 2008
Sept 1 Balance b/d 910 Sept 1 Petty cash 164 200
9 Deposit 1680 2 Insurance 165 450
12 M Pitso 2060 3 K Tumiso 166 1400
20 Deposit 3590 6 Purchases 167 2800
30 [Link] 1750 7 J Thabo 168 420
11 W.U.C 169 550
25 Wages 170 1200
26 BPC 171 760
30 Balance c/d 2210
---------- ---------
9990 9990
---------- --------
Balance b/d 2210
Botho Enterprise
Bank Statement for September, 2008
Date Details Debit(P) Credit(P) Balance(P)
2008
Sept 1 Balance b/d 1640 CR
1 Cheque 164 200 1440 CR
5 Cheque 161 730 710 CR
8 Interest on savings 350 1060 CR
9 Cash deposit 1680 2740 CR
10 Cheque 165 450 2290 CR
12 Cheque deposit 2060 4350 CR
12 Cheque 167 2800 1550 CR
13 Cheque 168 420 1130 CR
17 BHC(SO) 800 330 CR
20 Cash deposit 3590 3920 CR
21 Forex sales 2000 1920 CR
21 Bank charges 99 1821 CR
25 Cheque 170 1200 621 CR
30 Cheque 169 550 71 CR

(a) In relation to Botho Enterprise, explain the meaning of the following terms:
Cheques not yet presented (2)
Cheques not yet credited (2)
(b) Make additional entries that are required in the cash book of Botho Enterprise and
calculate a new cash book balance on 30 September, 2008 (6)
(c) Prepare a bank reconciliation statement at 30 September, 2008.(5)
(d) State the Section of the statement of financial position where the bank figure would
appear
(e) State three reasons for preparing Bank Reconciliation statement. (3)
 15

CLASS ECERCISE 3 (BGCSE 2019)

The bank column of Lorato’s cash book for the month of April 2019 are given below.
Cash Book (Bank column only)
Date Details F Pula Date Details F Pula
2019 2019
April 1 Balance 2 970 April 10 Purchases 234
14 S Ame 420 19 B. Baba 110
26 T Nkomo 217 29 S. Baruti 1 372
28 Sales 1 460 30 T. Nako 517
Balance 2834
5067 5067
Balance b/d 2834
May 1

Lorato’s Bank statement for the month of April 2019 is given below.
Matlotlo’s Bank Ltd
Account: Lorato Monoge Account No: 966250
Date: 30 April 2019
Date Details Debit(P) Credit (P) Balance(P)
2019
April 1 Balance 2 970 Cr
13 Cheque No.2388 243 2 727 Cr
19 Credit No.6983 420 3 147 Cr
20 Credit transfer(dividends) 150 3 297 Cr
24 Cheque No. 2389 110 3 187 Cr
30 Bank charges 95 3 092 Cr

It was discovered that Lorato has made an error on 10 April and recorded purchases as P234
when correct figure was P243.
(i) Make any additional entries that are required in Lorato’s cash [Link] and bring
down the balance on 1 May 2019
(ii) Prepare a bank reconciliation statement as 30 April 2019.
(iii) Give any three reasons why the balance in the cash book may differ from the balance in
the bank statement.
(iv) What will be the figure for cash at bank which will be shown in the statement of
financial position on 30 September 2019?
(v)Under which section of the statement of financial position will the up-dated cash book
balance will be shown?
 16

CLASS EXERCISE 4 (bgcse 2017)

Bridget Siska is a [Link] financila year ends of 30 [Link] bank columns of her cash
book for the month of June 2017 were as follows.
Bridget Siska
Cash book (bank column only)
Date Details F Pula Date Details F Pula
2019 2019
April 1 Balance b/d 788 April 10 Trading & Co 627
14 Jungo ltd 850 14 Water Utilities 431
15 Kgosi Ltd 65 17 General expenses 225
30 Cash 310 24 Gari Beef 250
30 Balance c/d 480
2013 2013

May 1 Balance b/d 480

Bridget Siska
Bank statement at 30 June 2017

Date Details Debit(P) Credit (P) Balance(P)

2019
June 1 Balance b/d 877Cr
14 Water Utilities 431 446
15 Jungo Ltd 850 1296
16 Kgosi ltd 65 1361
19 Credit transfer(dividend) 120 1481
20 Trading & Co 627 854
21 Direct debit(insurance) 40 814
21 General expenses 225 589
23 Jumgo Ltd(disnonourned) 65 524
30 Bank interest received 20 544
30 Bank charges 15 529

A study of Bridget Siska Cash book and her business bank statement received the following
errors.
1. The cash book balance brought forward on 1 June should have been P 877
2. The bank had credited the dividend received on 19 June, P120 to Bridget Siska’s business
bank account instead of her personal account.
(a) Update Bridget Siska’s cash book .Balance the cash book and bring down the balance on
1 July 2017. (7)
(b) Prepare Bank reconciliation statement for Bridget Siska at 30 June 2017. (5)
(c) State three reasons, other than finding errors, why Bridget Siska should reconcile her
cash book with the statement received from the bank. (3)
 17

CLASS EXERCISE 5 (BGCSE 2020)

On 1 September 2020 the bank column in Yaone’S cash book showed an overdarft of P2015.
On the same date her bank statement showed an overdraft of P5565.
A comparison of the cash book and bank statement revealed the following:
1. Items not appearing in the the cash book
P
Bank charges 150
Dishonoured cheque, Thabo 2 000
Credit transfer, Boemo 1 200
2. Items not appearing on the bank statement
Cash sales, paid into the bank on 30 August 5 000
Cheque issued to the land lord for rent 3 000
3. The bank balance in the cash book on 1 August 2020 should have been P4324 debit
instead of P3424 debit
4. The bank had debited Yaone with P1500 which should have been debited to the account
of Same another customer of the bank.

(a) (i) State what is meant by a bank overdraft. (1)

(ii) Name two documents (apart from a cheque) which may be used by Yaone to write up
her cash book. (2)
(b) Update the cash book(bank column’s only) of Yaone. Bring down the updated bank
balance on 1 Septemeber 2020.(5)
(c) Prepare a bank reconciliation statement for Yaone at 31 August 2020. (5)

CLASS EXERCISE 6( BGCSE 2023)

Bantsi is a [Link] bank statement showed an overdraft of P2980 ON 30 September
[Link] the same date, his cash book showed an overdraft of P1460.
Bantsi compared the bank statement with his cash book (bank columns only)
(a) State four reasons why Bantsi compared his cash book records with the bank statements.
(4)
The comparison of the cash book with the bank statement revealed the following.
P
1. Items appearing only on the bank statement
Bank charges 580
Dishonoured cheque PB Ltd 1 580
2. Items appearing only on the cash book
Cash sales paid into bank 29 September 2023 3 660
Cheque paid to T Bongani, credit supplier 2 600
3. Credit side of the cash book being overcast 1 700

(b) (i) Update Bantsi’s Cash book. Balance the updated cash book and bring down the
balance on 1 October 2023. (5)
(iii) Prepare Bank reconciliation statement for Bantsi at 30 September 2023. (4)
(c) State the bank balance which would be included in Bantsi’s statement of financial
position on 30 September 2023.
 18

LEARNING OUTCOME 2.4 CONTROL ACCCOUTS

CLASS EXERCISE 1
Complete the tables below
Sales ledger control account
ITEMS SOURCE
Credit sales
Dishonoured cheques
Refund from creditors
Receipts from debtors
Sales returns
Bad debts written off
Discounts allowed
Purchase ledger set off

Purchase ledger control account

ITEMS Sources (subsidiary books)
Payment to trade payables
Discount received
Purchase returns
Sales ledger set off
Credit purchases
 19

CLASS EXERCISE 2 (BGCSE 2014)

Joe Botho prepares control accounts for his trade payables and trade receivables at the end
of each month.
He provided the following information:
2014 P
May 1 Trade receivables ledger control account 9175 debit
Trade payables ledger control account 8 880 credit
Trade payables ledger control account 80 debit

2014 P
May 31 Totals for the month
Purchase journal 30 965
Sales journal 40 310
Purchase returns journal 625
Sales returns journal 510
Cheques received from Trade receivables 40 585
Cheque paid to trade payables 29 800
Trade receivables cheques dishonoured 250
Discount allowed 515
Discount received 990
Bad debts written off 120

(a) Prepare Joe Botho trade receivables ledger control account (8)
(b) Prepare Joe Botho trade receivables ledger control account (6)
 20

CLASS EXERCISE 3 (IGCSE 2023 )

Lucas is a trader. He has provided the following information
P
Balances at 1 January 2023
Sales ledger control account 14 940 debit
Purchase ledger control account 8 450 credit

Totals for January 2023

Credit sales 12 736
Cash sales 3 992
Credit purchases 7 325
Returns to credit suppliers 463
Returns from credit customers 920
Cash received from credit customers 685
Bank payments to credit suppliers 6 675
Bank transfers received from credit customers 10 620
Irrecoverable debts written off 140
Discount received 210
Contra entries 180
Interest charged on overdue purchases ledger accounts 166
REQUIRED:
(a) Prepare the sales ledger account for January 2023. Balance the account and bring down
the balance at 1 February 2023. (6)
(b) Prepare the purchase ledger account for January 2023. Balance the account and bring
down the balance 1 February 2023. (7)
(c) State two advantages of preparing control accounts (2)
 21

CLASS EXERCISE 3( IGCSE 2003 )

1. Ian Selkrik prepares control accounts for his purchases and sales ledgers at the end of each
month.
On 1 April 2003 the balances brought down on the control accounts were:
P
Purchase ledger control account 1960 credit
Sales ledger control account 1750 debit
Sales ledger control account 100 credit

Totals of the journals for April 2003 were:

Purchase journal 4190
Sales journal 5150
Purchase returns journal 135
Sales returns journal 270
The cash book for April 2003 showed:
Cheque received from debtors 4990
Cheque paid to debtor in respect of overpayment 3830
Discount allowed 110
Discount received 180
The journal entries for April 2003 showed:
Bad debt written 74

(a) Prepare Ian Selkrik’s purchase ledger control account and sales ledger control account
for the month of April 2003. Bring down the balances on 1 May 2003.
 22

CLASS EXERCISE 4 (IGCSE 2017)

2. Select the relevant items and prepare the sales ledger control account
2017 P
March 1 Debit balances in sales ledger 2346
Credit balances in sales ledger 140
30 Total for the month
Sales journal
Cheques received from credit customers 2145
Cheques paid to credit suppliers 3013
Cheque received from credit customer (included in the
Cheques received) later dishonoured 350
Discount allowed 55
Discount received 90
Returns by credit customers 276
Returns to credit suppliers 198
Contra entry 182
Bad debt written off 62

April 1 Debit balances in sales ledger 2670

Credit balances in sales ledger 86

CLASS EXERCISE 5 (BGCSE 2015)

3. (a) State three reasons for preparing control account
The following information was extracted from the books of Tumiso (Pty) Ltd for the month of
May 2015.
2015 P
May 1 Total trade receivables control account balance 35 000 debit
Total trade receivables control account balance 400 credit

May 31 Totals for the month

Credit sales 36 000
Discount allowed 500
Sales returns 300
Interest charged on overdue accounts 100
Cash received from credit customers 12 160
Cheque received from credit customers 18 240
Balance in the trade receivables ledger set off against
Trade payables ledger balance 800
Dishonoured cheques 600
Bad debts 750
Cash refund to credit customer 150

June 1 Total trade receivables control account balance ? debit

Total trade receivables control account balance 120 credit
(a) Prepare the trade receivables control account for May [Link] the account and
bring down the balance on 1 June 2015.
(b) State three reasons for the credit balance on the trade receivables control account.
(c) Give three reasons for preparing trade receivables control account
 23

CLASS EXERCISE 6 (BGCSE 2022)

Pono provided the following information.
2022 P
September 1 Credit balances in trade receivables ledger 380
Debit balances in the trade receivables ledger 42 600

September 30 Total for the month

Cheque received from credit customers 37 050
Credit sales 66 800
Cash sales 3 550
Returns from credit customers 243
Discount allowed 950
Discount received 650
Dishonoured cheque 405
Interest charged 110
Cash refunds to credit customer 100
Contra entry 3 200
Provision for doubtful debts 120

October 1 credit balances in the trade receivables ledger 220

Debit balances in the trade receivables ledger ?

(a) Prepare Pono’s trade receivables control account for the month of September 2022. Balance the
account on 30 September 2022 and bring down the balance on 1 October 2022.(10)
(b) Explain why Pono Obtains the information for preparing her trade payables ledger control account
from the books of Prime entry and not from the trade payables ledger accounts. (2)
 24

CLASS EXERCISE 7 (IGCSE 2016)

Amira prepare the sales ledger control acoount and purchase ledger control account every month.
(a) State two reasons why Amira prepares the control accounts (2)

Amira provided the following information for September 2016.

P
September 1 Debit balances in purchase ledger 93
Credit balances in purchase ledger 4210
September 30 total for the month
Credit purchases 5366
Cash purchases 1469
Cheques paid to credit suppliers 3705
Cheques received from credit customers 6102
Discount allowed 204
Discount received 95
Returns to credit suppliers 197
Interest charged by supplier on overdue accounts 12
Cash refund received from credit supplier 150
Contra entry 494

October 1 Debit balances in purchase ledger 68

Credit balances in purchase ledger ?
Required :
(a) Select the relevant figures and prepare purchase ledger control account for the month of
September. Balance the account and bring down the balance on 1 october 2016. (8)
(b) State two reasons why Purchase ledger control account may have a debit balances. (2)