IGCSE Accounting Course instructor: Manarat Ahmed Control accounts Sales ledger control A/C (or total debtors account)DateDetailsDetails

1stBalance b/dXgivenCash/Bank(received from customers/debtors)X

GivenCredit salesXgivenReturn inwardsX

GivenRefund to customersXgivenDiscount allowedX

GivenBank(Dishonoured cheque)XgivenBad debtsX

GivenBad debts recoveredXgivenSet-off ( transfer from purchase ledger)X

31stBalance c/dX

XX

1stBalance b/dX

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

GivenCash/Bank (payment to creditors/suppliers)X1stBalance b/dX

GivenSet-off (transfer from sales ledger)XgivenCredit PurchaseX

GivenReturn outwardsXgivenRefund from creditors

GivenDiscount receivedX

31stBalance c/dX

XX

1stBalance b/dX

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 :Control account checks only debtors and creditors account while trial balance checks all the accounts.Total Purchase = Cash purchase+ Credit purchaseTotal Sales = Cash sales + credit sales + sales withdrawn

Question 1Prepare a Purchase ledger control account.

April 1 - Purchases ledger balances 11,241

Totals for April:

Purchases journal 6,100

Returns outwards journal 246

Cheques paid to suppliers 8,300

Discounts received from suppliers 749

April 30 - Purchases ledger balances ?

Question 2Prepare a Sales ledger control account.

March 1 --- Debit balances 12,271

Totals for March:

Credit sales 9,334

Cash sales2000

Bad debts20

Provision for bad debts80

Cash and cheques received from debtors 11,487

Discounts allowed 629

Set-off82

March 31 Debit balances?

Question 3

Course Instructor | Manarat Ahmed Page | 1