GROUP 3E

UNISA
FAC 1502-S1-2016
DEBTORS CONTROL ACCOUNT
[STUDY UNIT 9]
Prepared by: Mr. Ramashau Aluwani
2016-03-08

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

WHATS ON THE MENU TODAY?

INTRODUCTION
DEBTORS CONTROL
GENERAL LEDGER
GOLDEN RULES
REVISION EXERCISES
SELF ASSESSMENT
INSPIRATIONAL POEM

2016-03-08

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

INTRODUCTION
Dear Honourable members!
Control Accounts (Debtors and Creditors) are very important topics that you
MUST know as you prepare for your final exam. You must be able to know
the transactions that affect Debtors/Creditors Control.
For now, my focus is on Debtors Control Account, go through the notes and
MUST DO exercises.
Kind regards
Mr. Ramashau Aluwani
E-Tutor: FAC1502 (Group 3E)
Great dancers are not great because of their technique, they are great
because of their passion. Martha Graham
2016-03-08

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

DEBTORS

Debtor is the person or business owing money to an entity which originates

from a credit sales
Debtor accepts responsibility for paying the debt within a specified period
Credit term is predetermined in accordance with credit policy on the entity
An entity may require certain clients to pay immediately, while others may
be allowed 30 or 60 days (the credit term) to pay for particular invoice.
In order to encourage prompt payment of credit sales, many entities offer
their clients a settlement discount.
When a credit transactions occurs there is a possibility that the debt might
not be paid. There debts which are never paid are called credit losses or
irrecoverable debts.
If the client does not pay on time, interest is charged on outstanding
amount
Debtors control account contains a summary of all the entries made in the
individual debtors accounts
PLEASE NOTE THAT FOR MORE INFORMATION GO TO STUDY GUIDE : STUDY
UNIT 9 (TRADE RECEIVABLES) FROM PAGE 191
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UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

DEBTORS CONTROL ACCOUNT

The main purpose of control account is to summarize all
transactions relating to the individual debtors, as reflected in
the individual debtors accounts.
The total of all the balances of the individual debtors accounts
in the debtors ledger must equal the balance of the debtors
control account in the general ledger.
Posting from journals to the debtors ledger takes place on a
daily basis
The balance on the control accounts must be reconciled
periodically, at least once a month with the total of the
balances of the individual accounts as kept in the debtors
ledger
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UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

DEBTORS CONTROL ACCOUNT

Journals to be posted at the end of the month to
Debtors control account:
Sales Journal (SJ)
Sales Returns Journal (SRJ)
Cash Receipts Journal (CRJ)
Cash Payment Journal (CPJ)
General Journal (GJ)
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UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

GENERAL LEDGER
Example of General Ledger: Debtors Control Account
Dr

DEBTORS CONTROL ACCOUNT

Cr

Balance

b/d

xxx

Bank (Debtors column)

CRJ

xxx

Bank (R/D)

CPJ

xxx

Credit Loss (Written off)

GJ

xxx

Sales

SJ

xxx

Sales returns (Returned

Goods)

SRJ

xxx

Journal Debits

GJ

xxx

Journal Credits

GJ

xxx

Interest received

GJ

xxx

Balance

c/d

xxx

xxxx
Balance

2016-03-08

b/d

xxxx

xxx

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

GOLDEN RULES
Overcast means that the amounts have been added up
incorrectly and that the total amount is more than it should
be.
When an error is made in totalling a journal the mistake only
affects the Debtors control account
When an entry was made on the wrong side of an account,
the effect of the correction is double the amount of the
error. First the wrong entry must be cancelled and then the
amount must be correctly entered. (refer to Page 209 & 210
of the Study Guide)
For summary of procedure refer to Page 207 of the Study
Guide
You are expected to reconcile the balance on the debtors
control account with the total list of debtors list (refer to
Page 209 of the Study Guide under Required No.2)
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UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

REVISION EXERCISES
Previous Question Papers
Question 2 : May/June 2013
Question 2 : Oct/Nov 2013 [Debtors Control]
Tutorial Letter 101
Assignment No.1
Study Guide Revision Exercises
Exercise 9.8 (Page 206 of the Study Guide)
Exercise 9.9 (Page 209 of the Study Guide)
Revision Exercise 4 (Page 215 of the Study Guide)

2016-03-08

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

SELF ASSESSMENT TIME

NO.

TOPIC

STATUS

TICKBOX

STUDY UNIT 1-5

DONE

STUDY UNIT 6

DONE

STUDY UNIT 7

DONE

STUDY UNIT 9

DONE

ASSIGNMENT NO. 1

DONE

2016-03-08

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

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INSPIRATIONAL POEM
Follow Your Dream
Follow your dream.
Take one step at a time and don't settle for less,
Just continue to climb.
Follow your dream.
If you stumble, don't stop and lose sight of your goal
Press to the top.
For only on top can we see the whole view,
Can we see what we've done and what we can do,
Can we then have the vision to seek something new,
Press on.
Follow your dream.
by: Amanda Bradley
2016-03-08

UNISA E-TUTOR: RAMASHAU FAC1502-S1-2016-GROUP 3E

11

GO FOR GOLD.
WELL DONE!

THANK YOU!
C U SOON
2016-03-08

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