CONTROL ACCOUNTS

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    Control account is an account which checks the arithmetical accuracy of a ledger. Control accounts enable the errors to be traced down to the ledgers which do not balance and so there wouldn’t be any need to check all the books to find a minute error.

     

     

    SALES CONTROL ACCOUNT

    DETAILS                                    $

     

    ●     Opening stock or

    balance b/d of debtors:

    ●     Credit sales:

    ●     Dishonoured cheques:

    DETAILS                                      $

     

    ●     Cash received from debtors:

    ●     Cheques paid by debtors

    ●     Return inwards

    ●     Bad debts

    ●     Discount allowed

    ●     Balance c/d or closing balance

     

     

     

    PURCHASE CONTROL ACCOUNT

    DETAILS                                      $

     

    ●     Cash / bank payment

    ●     Return outwards

    ●     Closing creditors

    ●     discountreceived

    DETAILS                                         $

     

    ●     Opening balance or balance b/d of creditors

    ●     Credit purchases

     

     

     

     

    Consider the following examples :

    1. You are required to prepare a sales ledger control account from the following data of month of may for business X

    Sales ledger balance on 1 may                      $4936

    TOTALS OF

    Sales journal                                                         $49916

    Return inwards journal                                $1139

    Cheques and cash received from customers            $46490

    Discounts allowed                                       $1455

    Sales ledger balance                                              $5768

     

    Ans.                                         SALES CONTROL ACCOUNT

    DETAILS                                          $

     

    ●     Opening stock                       $4936

    ●     Credit sales:                       $49916

     

     

     

     

     

    DETAILS                                          $

     

    ●     Cash & cheques paid

    by debtors                         $46490

    ●     Return inwards                     $1139

    ●     Discount allowed                  $1455

     

    ●     closing balance                    $5768

     

                                                       $54852                                                     $54852