O Level Notes : Accounts - Control Accounts
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
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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
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PURCHASE CONTROL ACCOUNT
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DETAILS $
● Cash / bank payment ● Return outwards ● Closing creditors ● discountreceived |
DETAILS $
● Opening balance or balance b/d of creditors ● Credit purchases
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Consider the following examples :
- 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
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DETAILS $
● Opening stock $4936 ● Credit sales: $49916
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DETAILS $
● Cash & cheques paid by debtors $46490 ● Return inwards $1139 ● Discount allowed $1455
● closing balance $5768
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$54852 |
$54852 |