Diese Präsentation wurde erfolgreich gemeldet.
Wir verwenden Ihre LinkedIn Profilangaben und Informationen zu Ihren Aktivitäten, um Anzeigen zu personalisieren und Ihnen relevantere Inhalte anzuzeigen. Sie können Ihre Anzeigeneinstellungen jederzeit ändern.
CONTROL ACCOUNTS 
1
2
3
4
5
6
7
FUNCTIONS OF CONTROL ACCOUNTS 
 The control accounts help us to locate errors. 
 The control accounts provide a summary....
FORM OF CONTROL ACCOUNTS 
 It is usual to final control accounts in the 
same form as an account, with the totals of 
the...
SALES LEDGER CONTROL ACCOUNT 
 Sales ledger control account = Total debtors 
account 
10
11 
Sales Ledger Control Account 
1996 $ 
Dec 1 Balance b/f a 
31 Sales b 
31 Cash / Bank c 
31 Bank d 
31 Bills receivabl...
Items Sources 
a. Total of opening debit balance of 
debtors 
Sales ledger 
b. Total credit sales Sales journal 
c.Cash re...
13 
i. Total of opening credit balances 
of debtors 
Sales ledger 
j. Returns inwards Returns inwards 
journal 
k. Cash or...
PURCHASES LEDGER CONTROL ACCOUNT 
 Purchases ledger control account = Total 
creditors account 
14
15 
Purchases Ledger Control Account 
1996 $ 
Dec 1 Balance b/f a 
31 Returns Outward b 
31 Cash / Bank c 
31 Bills Payabl...
16 
Items Sources 
a. Total of opening debit 
balances of creditors 
Purchases ledger 
b. Returns outwards Returns outward...
17 
h. Total of opening credit balances 
of creditors 
Purchases 
ledger 
i. Total credit purchase Purchases 
journal 
j. ...
TYPES OF MINORITY BALANCES 
 Temporary debit balances in total creditors 
account 
 Temporary credit balances in total d...
REASONS FOR THE OCCURRENCE OF 
MINORITY BALANCES 
 Returns after settlement of the accounts 
 Claims for shortages of go...
MINORITY BALANCES ON THE BALANCE 
SHEET 
20 
Balance sheet 
Debtors (debit balance of sales ledger + debit 
balance of pur...
CONTRA ITEM 
 If the same firm is both a supplier (creditor) 
and a customer (debtor), inter-indebtedness 
is set-off 
 ...
22 
The following information was extracted from the 
books of Lewell Ltd. On 1 March 1996: 
Purchases ledger control acco...
23 
Discounts received from suppliers 5,400 
Discounts allowed to customers 4,200 
Returns Inwards 900 
Cash received from...
EXAMPLE 1 
24
25 
Total creditors account 
31/3 discount received 5400 
Returns outwards 700 
Set-off 2600 
Cash 30000 
Bal c/f 3800 
31...
COMPARING SECTIONAL BALANCING 
AND SELF-BALANCING SYSTEM 
26
SELF-BALANCING SYSTEM 
• In larger organizations, control accounts are 
part of the double entry system, 
• The sales ledg...
SECTIONAL BALANCING SYSTEM 
• In small firms, debtors and creditors 
accounts are regarded part of the double-entry 
syste...
Sales Ledger control a/c 
Purchases ledger control a/c 
29 
Original 
documents 
Sales/Purchases 
Journals 
General ledger...
30 
Self-Balancing System 
Original 
documents 
Sales/Purchases 
Journals 
General ledger 
Sales and purchases a/c 
Sales/...
TRANSACTION RECORDING 
31
Seller’s book 
32
Transactions Self-balancing System Sectional 
Balancing 
System 
A Credit sales Dr Sales Ledger Control 
Cr Sales 
Dr Debt...
34 
Transactions Self-balancing System Sectional 
Balancing 
System 
E Bad debts 
written off 
Dr Bad debts 
Cr Sales Ledg...
BUYER’S BOOK 
35
36 
Transactions Self-balancing System Sectional 
Balancing 
System 
A Credit 
purchases 
Dr Purchases 
Cr Purchases Ledge...
CORRECTION OF ERRORS 
37
Errors Self-balancing System Sectional 
Balancing 
System 
a. Credit sales 
invoice omitted 
Dr Sales ledger Control 
Cr S...
39 
c. Sales of $120 
incorrectly 
entered in sales 
journal as $100 
Dr sales Ledger 
Control 
Cr Sales 
(increase the de...
40 
f. Sales 
understated in sales 
ledger control 
account 
Dr Sales Ledger 
Control 
Cr Suspense 
No entry 
(Debit the s...
41 
j. Balance of sales 
ledger control account 
has been incorrectly 
put to the wrong side 
of the trial balance. 
Cr. S...
EXAMPLE 2 
42
43 
John Chan 
The Journal 
Dr Cr 
1996 $ $ 
Dec 31 Sales Ledger Control 530 
Sales 530 
31 Suspense 1,050 
Discount recei...
44 
Suspense Account 
$ 
Balance b/f 1,200 
Discounts received 1,050 
2,250 
$ 
Bank 2,250 
_____ 
2,250 
Sales Ledger Con...
45 
Statement showing the Revised Balance of Sales Ledger Listing 
$ 
Original Balance 32,000 
Add Invoice understated 360...
Statement showing the Revised Balance of Purchases Ledger Listing 
46 
$ 
Original Balance 17,135 
Less Balance overstated...
47 
John Chan 
Balance Sheet as at 31 Dec 1996 
$ $ 
Fixed Asset 12,000 
Less Prov. For Depn. 5,000 
7,000 
Current Assets...
Nächste SlideShare
Wird geladen in …5
×

Control account

18.626 Aufrufe

Veröffentlicht am

control accounts

Veröffentlicht in: Wirtschaft & Finanzen
  • Unique Acne System, How to get lasting acne freedom clear skin e-book reveals all ▲▲▲ http://t.cn/AiWGkfAm
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier
  • suspence under head account
       Antworten 
    Sind Sie sicher, dass Sie …  Ja  Nein
    Ihre Nachricht erscheint hier

Control account

  1. 1. CONTROL ACCOUNTS 1
  2. 2. 2
  3. 3. 3
  4. 4. 4
  5. 5. 5
  6. 6. 6
  7. 7. 7
  8. 8. FUNCTIONS OF CONTROL ACCOUNTS  The control accounts help us to locate errors.  The control accounts provide a summary. The total balances of the debtors and creditors can be derived quickly and easily.  The control accounts are prepared by a different person than the one who prepares the sales and purchases ledgers, which also make fraud more difficult. 8
  9. 9. FORM OF CONTROL ACCOUNTS  It is usual to final control accounts in the same form as an account, with the totals of the debit entries in the ledger on the left-hand side of the control account, and the totals of the various credit entries in the ledger on the right hand side of the control account. 9
  10. 10. SALES LEDGER CONTROL ACCOUNT  Sales ledger control account = Total debtors account 10
  11. 11. 11 Sales Ledger Control Account 1996 $ Dec 1 Balance b/f a 31 Sales b 31 Cash / Bank c 31 Bank d 31 Bills receivable e 31 Interest received f 31 Bad debts recovered g 31 Balance c/f h x 1996 $ Dec 1 Balance b/f i 31 Returns Inwards j 31 Cash / Bank k 31 Bills receivable l 31 Set-off m 31 Discount allowed n 31 Bad debts o 31 Balance c/f p x
  12. 12. Items Sources a. Total of opening debit balance of debtors Sales ledger b. Total credit sales Sales journal c.Cash refund to a customer who Cash book has overpaid his account d. Dishonoured cheques Cash book e. Dishonoured bills Journal f. Interest charged by us on Journal overdue debts g. Bad debts recovered Journal h. Total of closing credit balances of debtors Sales ledger 12
  13. 13. 13 i. Total of opening credit balances of debtors Sales ledger j. Returns inwards Returns inwards journal k. Cash or cheques received from debtors Cash book l. Bills receivable from debtors Journal m. Balances in sales ledger set off Journal against credit balances in purchases ledger n. Discounts allowed Cash book o. Bad debts written off (not Journal provision for bad debts) p. Total of closing debit balances of debtors Sales ledger
  14. 14. PURCHASES LEDGER CONTROL ACCOUNT  Purchases ledger control account = Total creditors account 14
  15. 15. 15 Purchases Ledger Control Account 1996 $ Dec 1 Balance b/f a 31 Returns Outward b 31 Cash / Bank c 31 Bills Payable d 31 Set-off e 31 Discounts Received f 31 Balance c/f h x 1996 $ Dec 1 Balance b/f h 31 Purchases i 31 Cash / Bank j 31 Bank k 31 Bills Payable l 31 Interest Expenses m 31 Balance c/f n x
  16. 16. 16 Items Sources a. Total of opening debit balances of creditors Purchases ledger b. Returns outwards Returns outwards journal c. Cash or cheques paid to creditors Cash book d. Bills payable to creditors Journal e. Balances in purchases ledger Journal set off against debit balances in sales ledger f. Discounts received Cash book g. Total of closing credit balances of creditors Purchases ledger
  17. 17. 17 h. Total of opening credit balances of creditors Purchases ledger i. Total credit purchase Purchases journal j. Cash refund from suppliers who have overcharged us Cash book k. Dishonoured cheques returned from creditors Cash book l. Dishonoured bills returned from creditors Journal m. Interest payable on overdue debts Journal n. Total of closing debit balances of creditors Purchases ledger
  18. 18. TYPES OF MINORITY BALANCES  Temporary debit balances in total creditors account  Temporary credit balances in total debtors account 18
  19. 19. REASONS FOR THE OCCURRENCE OF MINORITY BALANCES  Returns after settlement of the accounts  Claims for shortages of goods or for invoices overcharged after settlement the accounts 19
  20. 20. MINORITY BALANCES ON THE BALANCE SHEET 20 Balance sheet Debtors (debit balance of sales ledger + debit balance of purchases ledger) X 八 Less: provision for bad debt (debit balance of sales ledger x percentage) X Creditors (credit balances of purchases X ledger + credit balances of sales ledger) X
  21. 21. CONTRA ITEM  If the same firm is both a supplier (creditor) and a customer (debtor), inter-indebtedness is set-off  Contra items(set-off) are shown on the credit side of the sales ledger control account and will appear on the debit side of the purchases ledger control account 21
  22. 22. 22 The following information was extracted from the books of Lewell Ltd. On 1 March 1996: Purchases ledger control account 28,500 Sales ledger control account 67,300 During the month: Cash sales 12,000 Credit sales 20,000 Cash purchases 8,800 Credit purchases 14,000
  23. 23. 23 Discounts received from suppliers 5,400 Discounts allowed to customers 4,200 Returns Inwards 900 Cash received from customers 25,000 Cash payment to suppliers 30,000 Returns Outwards 700 Bad debts written off 100 Bills receivable from customers 11,000 Dishonoured cheques returned to customers 500 Balances in sales ledger set off against credit Balances in purchases ledger 2,600
  24. 24. EXAMPLE 1 24
  25. 25. 25 Total creditors account 31/3 discount received 5400 Returns outwards 700 Set-off 2600 Cash 30000 Bal c/f 3800 31/3 bal b/f 28500 31/3 purchases 14000 42500 42500 Total debtor accounts 31/3 Bal b/f 67300 Sales 20000 Bank 500 31/3 discount allowed 4200 Returns inwards 900 Bad debts 100 Cash 25000 Bill receivable 11000 Set-off 2600 Bal c/f 44000 87800 87800
  26. 26. COMPARING SECTIONAL BALANCING AND SELF-BALANCING SYSTEM 26
  27. 27. SELF-BALANCING SYSTEM • In larger organizations, control accounts are part of the double entry system, • The sales ledger and purchases ledger (debtors and creditor accounts) are kept only on a memorandum purposes . 27
  28. 28. SECTIONAL BALANCING SYSTEM • In small firms, debtors and creditors accounts are regarded part of the double-entry system • The control accounts should be kept only for memorandum purposes 28
  29. 29. Sales Ledger control a/c Purchases ledger control a/c 29 Original documents Sales/Purchases Journals General ledger Sales and purchases a/c Sales/purchases ledgers Debtors/Creditors Trial Balance Double-entry system For memorandum purpose Sectional Balancing System Note: posting extracting
  30. 30. 30 Self-Balancing System Original documents Sales/Purchases Journals General ledger Sales and purchases a/c Sales/purchases ledgers Debtors/Creditors Trial Balance Double-entry system For memorandum purpose Sales Ledger control a/c Purchases ledger control a/c Note: posting extracting
  31. 31. TRANSACTION RECORDING 31
  32. 32. Seller’s book 32
  33. 33. Transactions Self-balancing System Sectional Balancing System A Credit sales Dr Sales Ledger Control Cr Sales Dr Debtors Cr Sales B Receipts from debtors Dr Cash / Bank Cr Sales Ledger Control Dr Cash/Bank Cr Debtors C Return inwards Dr Return Inwards Cr Sales Ledger Control Dr Return inwards Cr Debtors D Discount allowed Dr Discount Allowed Cr Sales Ledger Control Dr Discount Allowed Cr Debtors 33
  34. 34. 34 Transactions Self-balancing System Sectional Balancing System E Bad debts written off Dr Bad debts Cr Sales Ledger Control Dr Bad debts Cr Debtors F Bad debt recovered Dr Sales Ledger Control Cr Bad debts recovered Dr Cash / Bank Cr Sales Ledger Control Dr Cash/Bank Cr Debtors
  35. 35. BUYER’S BOOK 35
  36. 36. 36 Transactions Self-balancing System Sectional Balancing System A Credit purchases Dr Purchases Cr Purchases Ledger Control Dr Purchases Cr Creditor B Payment to creditors Dr Purchases Ledger Control Cr Cash/ Bank Dr Creditors Cr Cash/Bank C Return outwards Dr Purchases Ledger Control Cr Return Outwards Dr Creditors Cr Return Outwards D Discount received Dr Purchases Ledger Control Cr Discount Received Dr Discount Allowed Cr Debtors
  37. 37. CORRECTION OF ERRORS 37
  38. 38. Errors Self-balancing System Sectional Balancing System a. Credit sales invoice omitted Dr Sales ledger Control Cr Sales (Increase the debtors ledger listing.) Dr Debtors Cr Sales (Debit the sales ledger control account.) b. Sales omitted in journal Dr Sales Ledger Control Cr Sales (Increase the debtors ledger listing.) Dr Debtors Cr Sales (Debit the sales ledger control account.) 38
  39. 39. 39 c. Sales of $120 incorrectly entered in sales journal as $100 Dr sales Ledger Control Cr Sales (increase the debtors ledger listing.) Dr Debtors Cr Sales (Debit the sales ledger control account.) d. Sales journal undercast. Dr Sales ledger Control Cr Sales (The debtors ledger listing remains constant, because only the total figure is wrong. This does not affect the debtors accounts, the figures for which are entered individually.) Dr Suspense Cr Sales (Debit the sales ledger control account.) e. Sales of $120 incorrectly entered as $100 in sales account Dr Suspense Cr Sales Dr Suspense Cr Sales
  40. 40. 40 f. Sales understated in sales ledger control account Dr Sales Ledger Control Cr Suspense No entry (Debit the sales ledger control account.) g. Sales of $120 incorrectly debited to debtor account as $100. No entry (Increase the debtors ledger listing.) Dr Debtors Cr Suspense h. Balance of sales has been incorrectly put to the wrong side of the trial balance. Dr Suspense Dr Suspense i. Balance of debtors has been incorrectly put to the wrong side of the trial balance. No entry Cr Suspense
  41. 41. 41 j. Balance of sales ledger control account has been incorrectly put to the wrong side of the trial balance. Cr. Suspense No entry
  42. 42. EXAMPLE 2 42
  43. 43. 43 John Chan The Journal Dr Cr 1996 $ $ Dec 31 Sales Ledger Control 530 Sales 530 31 Suspense 1,050 Discount received 1,050 31 Returns Outwards 3,200 Purchase Ledger Control 3,200 31 Purchases Ledger Control 120 Sales Ledger Control 120 31 Bank 1,000 Sales Ledger Control 1,000 31 Bank 2,250 Suspense 2,250
  44. 44. 44 Suspense Account $ Balance b/f 1,200 Discounts received 1,050 2,250 $ Bank 2,250 _____ 2,250 Sales Ledger Control Account $ Balance b/f 30,000 Sales 530 Balance c/d 2,950 33,480 Balance b/d 32,360 $ Bank 1,000 Purchase Ledger Control-set off 120 Balance c/d 32,360 33,480 Balance b/d 2,950
  45. 45. 45 Statement showing the Revised Balance of Sales Ledger Listing $ Original Balance 32,000 Add Invoice understated 360 Revised Balance 32,360 Purchases Ledger Control Account $ Sales Ledger Control-set-off 120 Balance c/d 16,500 ______ 16,620 Balance c/d $ Balance b/d 12,000 Returns Outwards 3,200 Balance c/d 1,420 16,620 Balance b/d 16,500
  46. 46. Statement showing the Revised Balance of Purchases Ledger Listing 46 $ Original Balance 17,135 Less Balance overstated 635 Revised Balance 16,500 Statement showing the Revised Net Profit for the year ended 31 Dec 1996 $ $ Net Profit as per accounts 11,200 Add Sales undercast 530 Discounts Received undercast 1,050 1,580 12,780 Less Returns Outwards overcast 3,200 Revised Net Profit 9,580
  47. 47. 47 John Chan Balance Sheet as at 31 Dec 1996 $ $ Fixed Asset 12,000 Less Prov. For Depn. 5,000 7,000 Current Assets Stock 16,000 Debtors (32360+1420) 33,780 Bank (7000+1000+2250) 10,250 60,030 67,030 $ Capital Balance as at 1 Jan 96 38,000 Add Net Profit 9,580 47,580 Current Liabilities Creditors(16500+2950) 19,450 ______ 67,030

×