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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