Control Account MCQs

By: Prof. Dr. Fazal Rehman | Last updated: May 21, 2025

1. : Which of the following is another term for debtor control account?
(A) Sales account
(B) Receivable account
(C) Creditor control account
(D) Sales ledger control account

2. : Control accounts are most commonly used for which of the following purposes?
(A) Preparing cash flow statement
(B) Making accounts entries in other
(C) Accumulating the total balances of related accounts
(D) Detecting errors in accounting records

3. : Bad debts written off throughout a period of accounting are entered in which side of a control account?
(A) Debit side of creditor control a/c
(B) Credit side of creditor control a/c
(C) Debit side of debtor control a/c
(D) Credit side of debtor control a/c

4. : Which of the following accounts is used to record the cash sales?
(A) Sales account
(B) Sales ledger control account
(C) Debtor control account
(D) Revised debtor control account

5. : Adjust the debtor control account by adding the …………….. interest charge.
(A) $500 will be credited in the debtor control a/c
(B) $500 will be debited in the debtor control a/c
(C) $1000 will be credited in the debtor control a/c
(D) $1000 will be debited in the debtor control a/c

6. : Record the dishonored $200 check from Mr. Y as a debit to accounts receivable in a debtor control account?
(A) Debit control account with $25%
(B) Credit control account with $200
(C) Credit sales ledger control a/c with $200
(D) No treatment accounts in control

7. : Adjust the debtor control account by deducting $500 to correct the duplicated sales entry.
(A) $500 will be credited
(B) $500 will be debited
(C) $1000 will be credited
(D) $1000 will be debited

8. : Sales return was understood by $1000 which of the following is correct?
(A) $1000 will be debited in debtor control a/c
(B) $1000 will be credited in debtor control a/c
(C) No adjustment required
(D) $500 will be debited in debtor control a/c

9. : $500 debit was entered as $500 credit in sales ledger control account. What’s its adjustment, in the sales ledger control account?
(A) $500 should be debited
(B) $500 should be credited
(C) $100 should be debited
(D) $1000 should be credited

10. : Payment of $500 was received from debtors. Which of the following statements is correct?
(i) Debit account receivable control account with $500
(ii) Credit account receivable control account with $500
(iii) Debit account payable control account with $500
(iv) Credit account payable control account with $500

11. : Which of the following statements is/are correct?
(i) Creditor control account is also known as account payable control account
(ii) Creditor control account is also referred to as purchase ledger control account
(iii) Creditor control account is also called purchase ledger account
(A) (i) and (iii) are correct

12. : The correct adjustment in the creditor control account is to deduct $1000 to account for the omitted contra entry between the sales ledger and purchase ledger.
(A) $1000 should be credited
(B) $1000 should be debited
(C) No adjustment required
(D) None of these

13. : A creditor control account is a kind of since it can be used to prove the arithmetic correction of the accounting record:
(A) Purchases account
(B) Creditor account
(C) Trial balance
(D) Expense account

14. : The total of purchases return is entered on which side of a creditor control account?
(A) Debit side
(B) Credit side
(C) No accounting treatment required
(D) None of these

15. : Discount received is entered on which side of a creditor control account?
(A) Debit side
(B) Credit side
(C) No accounting treatment required
(D) None of these

16. : Identify the correct double entry for “bill receivable dishonor”:
(A) Debit debtor and Credit bill dishonored
(B) Debit bill dishonored and Credit debtor
(C) Debit creditor and Credit bill dishonor
(D) Debit cash and Credit debtor

17. : Generally, the total amount purchase is taken from which book of account for the purpose of preparing Creditor control account?
(A) Cash book
(B) Bank statement
(C) Purchase day book
(D) Purchases ledger accounts

18. : A creditor control account contains the following transaction Bank $100, Purchases $200, Discount received $100, Balance c/d= $300. Work out the balance b/d.
(A) $100
(B) $200
(C) $300
(D) $500

19. : Which of the following, generally, doesn’t appear in a debtor control account?
(A) Discount allowed
(B) Bank or cash
(C) Dishonored check
(D) Provision for doubtful debts