Control Accounts

Ledger;Books which contains all the T- Account

Sales Ledger;Contains accounts of all creditc ustomers (Trade Receivables)

Purchase Ledger;Contains accounts of all credit

suppliers (Trade payables)
General ledger;Abook which contains everything else (Inc. Sales & Purchases account

Because is

tradereceive
+ ↓ it in
Sales Ledger Control Account
~>
a

Balance b/d X,xxx Sales return X,xxx

Sales DiscountAllowed
x,xxx x,xxx

Bank X, xxx

tradepayable
Purchases Because is a
Ledger Control Account+ it
-
-

Durchases Return X,xxx Balance b/d X,xxx

DiscountReceived X,xxxPurchases X, xxx
Bank X, xxx

SalesLedgerControlAcouncents-
Purchase Ledger Control Account
+
-

t
(Total trade Account(
payables

Balance P/d X,xxx Balance byd X, xxx Balance P/d x.xxxBalance bid X,xxx

Sales X,xxxSales Return X,xxx Purchases return x, xxxPurchases X,xxx

Interestcharged x,xxxDiscountAllowed x,xxX Discounts Received X, xxx Interest Charged X, xxx

Dishonoured Cheque x,xxxBank (Receipts X,xxx Bank (Payments) X, xxx

Refund xxxxIrrecoverable debts X, xxx Contra (Set-off X,xxx

Contra (Set off) -

x, xxx

1 tradeReceivablesowethe the 1 thebusinessowes are

The businessowes Trade
Payables
1
trade receivasoneed trade
payables

the business less less.

The balance old on credit side The balance bid on debit side indicates an

indicates a liability. There asset. The business has paid the trade

are trade receivables that

pay payables extra which resulted in them

more than they should which owing the business (You

resulted in the business (you)

them. Cost:50
owing 40

you
↓
Customer
Cost:50 owe: 20

- owe:10
Customer You
->
70
Contra transactions in Control Accounts

from
Bakery gets supplies
market When the business's supplier is also the business's customer,
④

Bakery Shop Supermarket(Bulk -

Purchase no payment is needed from each other as are will CONTRAthe amount

7
supermarket gets the Bakery. against each other.
(providing goods without money
cake
supply from

Example Questions.

i
P

·p
C

P
S
S

+ Purchases Control Account +

-

Sales Ledger Control Account Ledger

-

Balance b 6225 Discounts Allowed 65/ Bank 39040 Balance b/d 3123

Sales 74554 Contra 290 Discounts received 333 Purchases 43545

Irrecoverable debts 291 Contra 290

Sales return 2341 Purchase returns 1112

Bank 72010 Balance Id 5893

46668
46668
Balance I 5196
80779 80779
-