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  • "Control Accounts": IGCSE Accounting Manarat Ahmed

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    Jake blake
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    This document provides information about control accounts for accounting. It includes sample control account transactions for a purchases ledger and sales ledger. It defines control accounts as accounts used to check the accuracy of amounts in debtors and creditors subsidiary ledgers. The key points are: - Control accounts record transactions for a period, like a month, to check totals match the subsidiary ledgers for debtors and creditors. - Advantages are identifying errors, preventing fraud, and providing accurate information for management decisions. - Limitations are inability to detect some types of errors like errors of principle or original entry. - It differs from a trial balance by only checking debtors and creditors, not all accounts. Sample control

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    Accounting Igcse

    Original Title

    Control Accounts

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    This document provides information about control accounts for accounting. It includes sample control account transactions for a purchases ledger and sales ledger. It defines control accounts as accounts used to check the accuracy of amounts in debtors and creditors subsidiary ledgers. The key points are: - Control accounts record transactions for a period, like a month, to check totals match the subsidiary ledgers for debtors and creditors. - Advantages are identifying errors, preventing fraud, and providing accurate information for management decisions. - Limitations are inability to detect some types of errors like errors of principle or original entry. - It differs from a trial balance by only checking debtors and creditors, not all accounts. Sample control

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    34 views2 pages

    "Control Accounts": IGCSE Accounting Manarat Ahmed

    Uploaded by

    Jake blake
    This document provides information about control accounts for accounting. It includes sample control account transactions for a purchases ledger and sales ledger. It defines control accounts as accounts used to check the accuracy of amounts in debtors and creditors subsidiary ledgers. The key points are: - Control accounts record transactions for a period, like a month, to check totals match the subsidiary ledgers for debtors and creditors. - Advantages are identifying errors, preventing fraud, and providing accurate information for management decisions. - Limitations are inability to detect some types of errors like errors of principle or original entry. - It differs from a trial balance by only checking debtors and creditors, not all accounts. Sample control

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    IGCSE Accounting

    Manarat Ahmed

    Course instructor:

    Control accounts
    Date
    1st

    Give
    n
    Give
    n
    Give
    n
    Give
    n

    1st

    Give
    n
    Give
    n
    Give
    n
    Give
    n
    31st

    Sales ledger control A/C (or total debtors account)


    Details

    Details
    Balance b/d
    X
    give
    Cash/Bank
    n
    (received from
    customers/debtors)
    Credit sales
    X
    give
    Return inwards
    n
    Refund to customers
    X
    give
    Discount allowed
    n
    Bank(Dishonoured
    X
    give
    Bad debts
    cheque)
    n
    Bad debts recovered
    X
    give
    Set-off
    n
    ( transfer from purchase
    ledger)
    31st Balance c/d
    X
    Balance b/d
    X

    X
    X
    X
    X

    X
    X

    Purchase ledger control A/C (or total creditors account)


    Details

    Details

    st
    Cash/Bank
    X
    1
    Balance b/d
    X
    (payment to
    creditors/suppliers)
    Set-off
    X
    give
    Credit Purchase
    X
    (transfer from sales
    n
    ledger)
    Return outwards
    X
    give
    Refund from creditors
    n
    Discount received
    X
    Balance c/d

    X
    X
    1st

    Balance b/d

    X
    X

    Items NOT to be included- Provisions. E.g. provision for bad debts/depreciation/cash sales, purchase.

    Advantages of control accounts :


    1. It can identify any arithmetical errors ensuring accuracy of accounts.
    2. It can be used to prevent fraud which might have taken place within the business.
    3.It provides the management with accurate information ,thus, helping in decision-making.
    Limitations of control accounts (same as trial balance):
    1. It is unable to detect errors such as error of omission, commission, principle, original entry.
    Difference between Control account and trial balance :
    Course Instructor | Manarat Ahmed
    Page | 1

    Control account checks only debtors and creditors account while trial balance checks all the
    accounts.
    Total Purchase = Cash purchase+ Credit purchase
    Total Sales = Cash sales + credit sales + sales withdrawn
    Question 1
    Prepare a Purchase ledger control account.
    April 1 - Purchases ledger balances
    Totals for April:
    Purchases journal
    Returns outwards journal
    Cheques paid to suppliers
    Discounts received from suppliers
    April 30 - Purchases ledger balances

    11,241
    6,100
    246
    8,300
    749
    ?

    Question 2
    Prepare a Sales ledger control account.
    March 1 --- Debit balances
    Totals for March:
    Credit sales
    Cash sales
    Bad debts
    Provision for bad debts
    Cash and cheques received from debtors
    Discounts allowed
    Set-off
    March 31 Debit balances

    12,271
    9,334
    2000
    20
    80
    11,487
    629
    82
    ?

    Question 3

    Course Instructor | Manarat Ahmed


    Page | 2

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