Control Accounts Reference Chapter 27 p 338 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 Ledgers 7 books: Sales journal, Purchases journal, Returns inwards journal, Returns outwards journal, Cash book, Petty cash book, Journal 3 ledgers: Sales ledger, Purchases ledger, General ledger Original documents 7 books Posting 3 ledgers

Original documents Sales / Purchases Journals (7 books) General ledger Sales and Purchases a/c Sales / Purchases ledgers Debtors / Creditors a/c Trial Balance Double entry system Sales ledger control account Purchases ledger control account For memorandum purposes posting extracting

C Sales Ledger Control a/c 2008 Dec 1 Balance b/f $ 2008 $ (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 31 Discounts allowed (l) (e) 31 31 Balance c/f (g) X 31 Bad Debts (m) 31 Balance c/f (n) X

Items (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 Sources Sales ledger Sales journal Cash book Journal Sales ledger Returns inwards journal Cash book Journal Sales ledger

D Purchases Ledger Control a/c 2008 Dec 1 Balance b/f $ 2008 $ (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 Purchases ledger (b) Returns outwards journal (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 Cash book Journal Cash book Purchases ledger Purchases journal Cash book Journal Purchases ledger