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Control Accounts in Principles of Accounts

The document outlines the principles of control accounts, specifically focusing on Sales Ledger and Purchase Ledger control accounts. It details their purposes, such as ensuring accuracy in ledger postings and facilitating error localization. Additionally, it provides a breakdown of credit and debit side items for both control accounts.

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Jerome Nisa
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6 views2 pages

Control Accounts in Principles of Accounts

The document outlines the principles of control accounts, specifically focusing on Sales Ledger and Purchase Ledger control accounts. It details their purposes, such as ensuring accuracy in ledger postings and facilitating error localization. Additionally, it provides a breakdown of credit and debit side items for both control accounts.

Uploaded by

Jerome Nisa
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Principles of Accounts 10 B

Control Accounts
Types of Control Accounts
 Sales Ledger/Debtors/Receivables Control Account
 Purchase Ledger/Creditors/Payables Control Account
Purpose of Control Accounts
 Checks the accuracy of postings in the ledger.
 Provide easy reference for information.
 Localise errors.
 Enables General Ledger to be self-balanced.

Sales Ledger Control Account

Credit side items Debit side items


Cash/Bank Bal b/d
Sales returns Sales
Discount Allowed Dishonoured cheque
Bad Debts Refund
Contra Other transactions that increase the
amount owing, like interest charged.

Purchase Ledger Control Account

Credit side items Debit side items


Bal b/d Cash/bank
Purchases Purchases returns
Any charges to creditors Discount received
Contra

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