(a) List four items each that are found on the
(i) credit side of the sales ledger control account;
(ii) debit side of the purchases ledger control account.
(b) List seven types of errors a trial balance will not reveal.
Explanation
(a) i. The sales ledger control account is used to monitor the amounts owed by customers to your business. The following are some of the items found on the credit side of the account;
- cash / bank
- Discount allowed
- Sales returns
- Bad debts
ii. The purchase ledger control account shows how much you owe to your suppliers. The debit side of the account contains the following;
- Discount receive
- Purchase returns
- set off / contra entries
- Bills payable
(b) Errors that do no affect the agreement of the trial balance are;
- Error of omission
- Error of commission
- Error of principle
- Error of original entry
- Complete reversal of entries
- Error of transposition
- Compensating error
- Error of duplication