Control Accounts - Principles of Accounting

Control Accounts - Principles Of Accounting
Page 1 of 7
Principles Of Accounting
Principles of Accounting Made Easy
Home Topics Pricacy Policy
Accounting
Contact Us
Balance Sheet Inventory Control Credit Control
Search
Move Management
www.moveplan.co.uk
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/ Control Accounts

Control Accounts are the total accounts used for checking the arithmetical accuracy of each of ledger separately. A control account contains the same information as the individual ledger accounts which it controls, but in total. Purposes of control accounts 1. To act as a check on the accuracy of the totals of the balances in the sales and purchases ledgers. 2. To provide totals of debtors and creditors quickly when a trial balance is being prepared. 3. To identify the ledger(s) in which errors have been made when there is a difference on the trial balance. 4. To act as an internal check on the work of the sales and purchases ledger clerks to detect errors and deter fraud, under the charge of a responsible person
Planning and Managing Moves Achieve Zero Downtime
Business news
www.Amadeus.com... Get Your Business Ahead - Stay Informed - Free Paper & Infographic
Set off / contra entries. Sometimes, the same person may be a debtor as well as a creditor for the business. At the end of the month, the smaller amount in his account from one ledger is transferred to his account in the ledger with large amount. The entry passed for recording this transfer is known as set off or contra entry. Key Points
/ http://www.principlesofaccounting2.com/
www.impressionsys... Simple & Easiest way to post any data from Excel to Tally.ERP9 account. Creditors ledger control account is also known as purchases ledger control account or total creditors account. Balance in sales ledger control account is the balance of debtors at the year end and balance in purchases ledger control account is balance of creditors. Cash sales and cash purchases are not recorded in the control accounts. The double entry to record set off from purchase ledger to sales ledger is to debit purchase ledger control account and credit sales ledger control account. Dishonoured cheque which was received from debtors is shown in the debit side of the sales ledger control account. Interest on overdue accounts charged from customers and refunds to customers for overpayments by them are shown on the debit side of sales ledger control account.
Excel to Tally
Control accounts are considered as total accounts. Debtors ledger control account is also known as sales ledger control account or total debtors
QuickBooks 2013 Original

www.echesconsulta... Intuit Premier Reseller in Maldives Get the Best from the Best-7790989
Jobs Dubai
jobrapido.com/jobs... 5 urgent open positions. Apply now! Jobs Dubai
Interest charged by suppliers and refunds received from suppliers for overpayments to them are recorded in the credit side of purchases ledger control account. Provision for bad debts is not included in sales ledger control account Small balance in a control account represents advance payments, overpayments etc. Sources of information for items appearing in the sales ledger control account
Non-Profit Accounting
www.qwpage.com/ Accounting software specializing in all nonprofit organizations
1. Credit sales- sales day book total. 2. Returned cheques (unpaid cheques) cash book- payments side/ bank statement. 3. Interest charged to debtors- Interest received account. 4. Cash or cheques from debtors cash book-receipts side. 5. Discount allowed cash book (debit side) or discount allowed account. 6. Sales returns sales returns day book total. 7. Bad debts written off general journal or bad debts account. 8. Set off or contra entries- general journal. The format of sales ledger control account
http://principlesofaccounting2.com/ http://principlesofaccounting2.com/
Sources of information for items appearing in the sales ledger control account
http://principlesofaccounting2.com/topics/control-accounts/
8/12/2013
Page 2 of 7
1. Credit sales- sales day book total. 2. Returned cheques (unpaid cheques) cash book- payments side/ bank statement. 3. Interest charged to debtors- Interest received account. 4. Cash or cheques from debtors cash book-receipts side. 5. Discount allowed cash book (debit side) or discount allowed account. 6. Sales returns sales returns day book total. 7. Bad debts written off general journal or bad debts account. 8. Set off or contra entries- general journal. Format of purchase ledger control account
Control Account Questions: Q1.The following balances have been extracted from the books of a business on 31 may 2006 Prepare the Sales Ledger control account $ Opening Debtors Receipts from debtors Discounts allowed Returns Inwards Bad debts written off Set off from purchase ledger Credit sales of goods Credit balances on 31 May 2006 Dishonored cheques 6 000 11 400 600 500 500 1 000 15 000 200
100 Interest charged from debtors Cash refunds to customers 100 50 Q2.The following balances have been extracted from the books of a business on 31 may 2006 Prepare the Sales Ledger control account $ Opening Debtors Receipts from debtors Discounts allowed Returns Inwards Bad debts written off Set off from purchase ledger Credit sales of goods Credit balances on 31 May 2006 Dishonored cheques Interest charged from debtors Cash refunds to customers 10 000 21 500 500 300 100 800 25 000 300 1000 200 100
Q3. The following balances have been extracted from the books of a business that uses control accounts. The business makes up the control accounts on 31 may 2006.Prepare the Purchases Ledger Control Account $ Opening Creditors Payments to creditors Discounts received Purchases returns 4 000 7 600 400 500
Set off from Sales Ledger 1 000 200 Interest charged by suppliers Cash refunds from suppliers 100
8/12/2013
Page 3 of 7
Credit Purchases
12 000
Q4.The following balances have been extracted from the books of a business that uses control accounts. The business makes up the control accounts on 31 may 2006. Prepare the Purchases Ledger Control Account $ Opening Creditors Payments to creditors Discounts received Purchases returns 6 000 10 400 600 750
Set off from Sales Ledger 1 500 300 150 18 000 Interest charged by suppliers Cash refunds from suppliers Credit Purchases Q5. The following details are available from the books of Weston for the month of May, 2003.Prepare Sales ledger control account and Purchases ledger control account. $ Opening debtors Opening creditors Cash received from debtors Cheques received from debtors Cheques paid to creditors Cash paid to creditors Bad debts written off during the year Discount allowed Discount received Returns inwards 4 000 3 800 8 000 60 000 55 000 7 000 750 1 250 1 000
800 Returns outwards 500 Transfer from purchases ledger to sales ledger Credit sales Credit purchases 500 80 000 71 000 Q6. From the following information prepare the sales ledger control account and purchases ledger control account. $ Opening debtors Opening creditors Credit sales Credit purchases Returns inwards Returns outwards Discounts allowed Discounts received Bad debts written off Cash paid to creditors Cheques paid to creditors Cheques received from debtors Cash received from debtors Customers cheques returned unpaid Set off from sales ledger to purchases ledger 12 000 8 000 30 000 25 000 500 800 1 000 300 200 2 500 20 000 25 000 4 500 1 000 600
Q7. Sales ledger control account balance b/d 10 000
The following details are available from the books of Mathews for the month of June, 2003.
Prepare the sales ledger control account and purchases ledger control account for the month of June, 2003. $
8/12/2013
Page 4 of 7
Purchases ledger control account balance b/d Purchases for the month Sales for the month Returns inwards Returns outwards Payments to creditors Receipts from debtors Customers cheques returned unpaid Bad debts written off Discount received Discount allowed
8 000 12 000 16 000 1 000 400 11 000 15 000 500 300
550 750 Transfer from purchases ledger to sales ledger Credit balance in sales ledger control account Debit balance in purchases ledger control account 600 600 200
Q 10. The following information is relating to the business of Anson for the month ended 31st March 2003:Credit sales and return inwards are subject to 10% trade discount on list price. 1st March 2003 31 March Debtors Creditors Credit sales at list price Cash sales Returns inwards at list price Credit purchases Discount allowed Discount received Customers cheque returned by bank with remarks of insufficient funds Interest charged on overdue debts Return outwards Cheques paid to suppliers 4,000 2,000 2,00,00 5,000 1,500 12,000 1,500 1,400 900 250
750 7,000 Cheques and cash received from credit customers Credit balance in sales ledger Bad debts written off 15,000 300 600 Required:1. Make sales ledger control accounts of Mr. Ibrahim for the month of March 2003. 2. Calculate total Turn over on 31st March 2003 Q11. The following information was obtained from the books of K. Vasanthi. $ 19,012 5,160 15,000 40,690 14,400 400 240 39,160 500 10,340 380 420 140 310 700 120 80
1st April 2003
Trade debtors Trade creditors Stock in trade
31st March 2004 Credit sales Credit purchase at list price* Purchase return at list price* Sales return Cash and cheque received from debtors Customers cheque dishonored Cash and cheque paid to suppliers Discount received Discount allowed Interest charged to customers on Overdue accounts Bad debts written off Balance in the sales ledger set off against balance in the purchase ledger Cash refunds from suppliers for over payments Debit balance in purchase ledger Credit balance in sales ledger
*On 31st March 2004 the stock in trade was valued at $ 12,500.
124 260 Overdue interest charged by our suppliers 360 Cash refunds for over payments made by customers *All purchases and purchase returns were subject to a trade discount of 20%off the list price. During the year cash sales were $ 22 000 and cash purchase were $ 12,500.
8/12/2013
Page 5 of 7
Required:1. Total Debtors Account for the year ended 31st March 2004 2. Total Creditors Account for the year ended 31st March 2004. 3. c. Calculate the Gross profit of the business for the year ended 31st march 2004.
Q12. The following details are available from the books of a business for the year ended 31st December 2002:$ On 1-1-2000 On 31-12-2000 On 1-1-2002 On 1-1-2002 The balance in the provision for bad debts account Total debtors Purchase ledger control account balance Sales ledger control account balance $ 400 $12 000 $ 12 700
$ 14 200 On 31-12-2002: Cheque issued to suppliers Cheque received from customers Discount allowed Discount received Returns inwards Return outwards Bad debts written off Dishonored cheque returned to us Credit sales Credit purchases Set off from purchase ledger to the sales ledger 5% of year end debtors should be created as provision for bad debts Required to prepare:a. Purchase ledger control account for the year ended 31st December 2002 $ $ $ 19,200 $ 50,400 400 600 $ 1 000 $ 900
$ 1 200 $ 1 200 $ 52 000 $ 28 000 $ 2 000
b.Prepare the sales ledger control account for the year ended 31st Dec 2002. c.The provision for bad debts a/ct and the balance sheet extracts for the 3 years ended 31st Dec 2000,2001 and 2002. Q13. The following details are available from the books of a business for the year ended 31st December 2002:$ On 1-1-2000 On 31-12-2000 On 1-1-2002 On 1-1-2002 On 31-12-2002: Cheque issued to suppliers Cheque received from customers Discount allowed Discount received Returns inwards Return outwards Bad debts written off Dishonored cheque returned to us Credit sales Credit purchases Set off from purchase ledger to the sales ledger 5% of year end debtors should be created as provision for bad debts Required to prepare:- Purchase ledger and sales ledger control accounts for the year ended 31st December 2002 28 800 75 600 600 900 1 500 1 200 1 800 1 800 78 000 42 000 3 000 The balance in the provision for bad debts account total debtors Purchase ledger control account balance Sales ledger control account balance 600 18 000 19 150 21 300
C. General journal D. Sales ledger
MCQ
1. What is the source of information for credit sales for preparing the control accounts? 1. Sales account in the General ledger B. Sales journal
8/12/2013
Page 6 of 7
1. Which of the following is not considered while preparing the sales ledger control account? A. Opening balance of debtors C. Discount allowed B. Discount received D. Returns inwar
3. Which item will appear on the debit side of a debtors ledger control account? A. Cash sales C. Return inwards B. Cheques received D. Sales on credit
4. Which item will appear on the credit side of a purchase ledger control account?
C. Credit purchases D. purchases returns 5. What is the purpose of preparing the control accounts? A. To calculate the total sales B. To calculate the closing debtors only C. To calculate the closing creditors only D. To check the arithmetical accuracy of each ledger separately.
A. Cheques paid
B. Discount received
6. What is the alternative name of the sales ledger control account? A. Total debtors account C. Purchases account B. Total creditors account D. sales account.
7. Cash is refunded to customer, who had overpaid his account. In which ledger control account it is recorded? 1. Debit side of sales ledger control account. 2. Credit side of sales ledger control account. 3. Debit side of purchase ledger control account. 4. Credit side of purchase ledger control account. 5.
8. A refund was received from a supplier for excess payment made by us. Where should it be recorded? A. Debit side of sales ledger control account. B. Credit side of sales ledger control account. C. Debit side of purchase ledger control account. D. Credit side of purchase ledger control account. 9. A purchase ledger control account is prepared from the following list of items:Total creditors at the start of the month $ 900 Credit purchases Customers debts written off Cash paid to creditors Returns inwards What is the closing balance? A. $ 600 B. $900 C. $ 1100 D. 1400 $ 12000 $ 200 $ 11800 $ 300
10. The table shows details of sales ledger:Sales ledger opening balance Total credit sales Cheques received from customers Cash received form customers Returns inwards What is the closing balance of debtors? A. $ 3664 B.$ 3072 C. $ 3368 D. $ 2664 $ 1894
$ 10290 $ $ $ 7284 1236 296
Incoming search terms:
8/12/2013
Page 7 of 7
control accounts what is control account debtors control account control account Purposes of control account rekening kontrol kas sales ledger control account sales ledger control account questions transferring sales day book to control uses of control account
http://www.principlesofaccounting2.com
8/12/2013

Control Accounts - Principles of Accounting

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Control Accounts - Principles of Accounting

Uploaded by

Copyright:

Available Formats

Control Accounts - Principles Of Accounting

http://principlesofaccounting2.com/ http://principlesofaccounting2.com/ Control Accounts

Planning and Managing Moves Achieve Zero Downtime

QuickBooks 2013 Original