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Control Accounts Overview: Debtors & Creditors

Control accounts are used to record transactions related to debtors and creditors in the general ledger. There are two types of control accounts: debtors control accounts, which record total transactions with customers, and creditors control accounts, which record total transactions with suppliers. Control accounts provide a summary of transactions with debtors and creditors and help detect errors or fraud. They are made up of entries for opening balances, sales or purchases, payments received or made, discounts, returns, and closing balances.

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67 views1 page

Control Accounts Overview: Debtors & Creditors

Control accounts are used to record transactions related to debtors and creditors in the general ledger. There are two types of control accounts: debtors control accounts, which record total transactions with customers, and creditors control accounts, which record total transactions with suppliers. Control accounts provide a summary of transactions with debtors and creditors and help detect errors or fraud. They are made up of entries for opening balances, sales or purchases, payments received or made, discounts, returns, and closing balances.

Uploaded by

hoozhoon hoodhood
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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CONTROL ACCOUNTS -Transactions in relation to debtors and creditors are originally entered in the subsidiary books.

Thereafter the following entries are made: 1. Double entry is made in the GENERAL LEDGER within the Personal ledger [Link] entry of total transactions is made in the CONTROL ACCOUNTS PERSONAL LEDGER This is found within the general ledger and is meant to record transactions relating to each Debtor and each Creditor separately. CONTROL ACCOUNTS These are also known as Total accounts and are of two types: 1. DEBTORS CONTROL ACCOUNT also called sales ledger control accounts or total debtors accounts record total of transactions in relation to debtors for a particular period. 2. CREDITORS CONTROL ACCOUNT also called Purchases ledger control account or Total creditors account will record total of transactions in relation to creditors for a particular period USES OF CONTROL ACCOUNTS (1)It provides a summary of transactions in relation to debtors and creditors (2)It helps to detect fraud and errors. FORMAT OF A DEBTORS CONTROL ACCOUNT: Debtors control account Date 01.01.02 31.12.02 31.12.02 31.12.02 31.12.02 31.12.02 Details Balance b/d Credit sales Refund Bank (Dishonoured cheque) Interest on overdue a/c Balance c/d(small balance) Amount ***** ***** ***** ***** ***** ***** ***** Date 01.01.02 31.12.02 31.12.02 31.12.02 31.12.02 31.12.02 31.12.02 Details Balance b/d(small balance) Bank (amount received) Discount allowed Sales returns Contra Bad debts Balance c/d Amount ***** ***** ***** ***** ***** ***** ***** *****

Creditors control account Date 01.01.02 31.12.02 31.12.02 31.12.02 31.12.02 31.12.02 Details Balance b/d(small balance) Bank(amount paid) Discount received Purchases return Contra Balance c/d Amount ***** ***** ***** ***** ***** ***** ***** 31.12.02 Balance c/d(small amount) ***** ***** Date 01.01.02 31.12.02 31.12.02 Details Balance b/d Credit purchases Refund Amount ***** ***** *****

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