Professional Documents
Culture Documents
Controls Accts
Controls Accts
Control Accounts
4 500
Credit sales
Returns inwards
Source
List of debtors balances
drawn up at the end of the
previous period
Total from Sales Journal
Total of Returns Inwards
Journal
Cash book
Cash Book
List of debtors balances
drawn up at the end of the
period
Source
Purchases ledger
control
Opening creditors
Credit purchases
Returns outwards
$
1 894
10 290
7 284
1 236
296
3 368
$
1 894
10 290
12 184
2005
$
Jan 31 Bank
7284
Cash
1236
Returns
inwards
296
Bal c/d
3368
12 184
2005
$
Jan. 1 Bal. b/d
3 890
31 Purchases 4 976
8 866
Worked example
Dr. Rodney sales ledger control a/c
Transfer from
purchases ledger
Dr. Rodney purchases ledger control
Transfer to sales
ledger
$30
Cr
$30
Cr
Contra entries
It does not matter whether the debit or the
credit balance is greater. When showing
the contra in the control accounts:
the sales ledger control account is always
credited and
the purchases ledger control account is
always debited.
Worked example
2005
$
Aug 1 Sales ledger-debit balances 3 816
-credit balances
22
31 Transactions for the month:
Cash received
6 343
Sales
7 090
Bad debts written off
306
Cash sales
1 080
Discounts allowed
298
Returns inwards
664
$
Cash refunded to a customer who
had overpaid his account
37
Dishonoured cheque
29
Interest charged by us on overdue debt 50
At the end of the month:
Sales ledger debit balances
3 429
Sales ledger credit balances
40
Required;
Prepare the sales ledger control account