Control Accounts Reference: Chapter 27 (p. 338). AFunctions of Control A/C Locate errors; Provide a...

Control Accounts

Reference:Chapter 27 (p. 338)

A Functions of Control A/C

Locate errors;Provide a summary of the total of debtors and creditors;Cross-check to avoid fraud.

B Revision

Books of original entries and Ledgers7 books: Sales journal, Purchases journal, Returns inwards journal, Returns outwards journal, Cash book, Petty cash book, Journal3 ledgers: Sales ledger, Purchases ledger, General ledgerOriginal

documents7 books 3 ledgers

Posting

Originaldocuments

Sales / PurchasesJournals

(7 books)

General ledgerSales and

Purchases a/c

Sales /Purchases ledgers

Debtors / Creditors a/c

TrialBalance

Double entry system

Sales ledger control accountPurchases ledger control account

For memorandum purposes

posting extracting

C Sales Ledger Control a/c

Sales Ledger Control a/c

2008 $ 2008 $

Dec 1

Balance b/f (a) Dec 1

Balance b/f (h)

31 Sales (b) 31 Returns inwards (i)

31 Cash / Bank (Refund)

(c) 31 Cash / Bank (j)

31 Bank(Dishonoured cheques)

(d) 31 Set-off (k)

31 Interest received (e) 31 Discounts allowed (l)

31 Bad debts recovered

(f) 31 Bad Debts (m)

31 Balance c/f (g) 31 Balance c/f (n)

X X

Items Sources

(a) Total of opening debit balances of debtors

(b) Total credit sales

(c) Cash refund to a customer

(d) Dishonoured cheques(e) Interest charged by us on overdue

debts

(f) Bad debts recovered

(g) Total of closing credit balances of debtors

(h) Total of opening credit balances of debtors

(i) Returns inwards

(j) Cash or cheques received from debtors(k) Balances in sales ledger set off against

credit balances in purchases ledger

(l) Discounts allowed

(m)

Bad debts written (not provision for bad debts)

(n) Total of closing debt balances of debtors

Sales ledger

Sales journalCash book

Cash bookJournal

JournalSales ledger

Sales ledgerReturns inwards journal

Cash book

Journal

Cash book

JournalSales ledger

D Purchases Ledger Control a/c

Purchases Ledger Control a/c

2008 $ 2008 $

Dec 1

Balance b/f (a) Dec 1

Balance b/f (g)

31 Returns outwards (b) 31 Purchases (h)

31 Cash / Bank (c) 31 Cash / Bank (i)

31 Set-off (d) 31 Bank (j)

31 Discounts received

(e) 31 Interest expenses (k)

31 Balance c/f (f) 31 Balance c/f (l)

X X

Items Sources

(a)

Total of opening debit balances of creditors

(b)

Returns outwards

(c)

Cash or cheques paid to creditors

(d)

Balances in purchases ledger set off against debit balances in sales ledger

(e)

Discounts received

(f) Total of closing credit balances of creditors

(g)

Total of opening credit balances of creditors

(h)

Total credit purchases

(i) Cash refund from suppliers who have overcharged us

(j) Dishonoured cheques returned from creditors

(k)

Interest payable on overdue debts

(l) Total of closing debt balances of creditors

Purchases ledger

Cash book

Cash book

Journal

Purchases ledgerPurchases ledger

Returns outwards journal

Purchases journal

Cash book

Cash bookJournal

Purchases ledger