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Sales Ledger Control Account Overview

The document discusses the necessity of control accounts in accounting to minimize errors when drawing up a Trial Balance from different ledgers. It outlines the structure and information required for both Sales Ledger and Purchase Ledger Control Accounts. Additionally, it provides examples of transactions and balances for both ledgers to illustrate their use.

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16 views2 pages

Sales Ledger Control Account Overview

The document discusses the necessity of control accounts in accounting to minimize errors when drawing up a Trial Balance from different ledgers. It outlines the structure and information required for both Sales Ledger and Purchase Ledger Control Accounts. Additionally, it provides examples of transactions and balances for both ledgers to illustrate their use.

Uploaded by

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

100 LAMBS INTERNATIONAL SCHOOL

NAME:
NUR FATHIAH BINTI MOHAMAD SHAH
CLASS:
ACCOUNTING
DATE:
CONTROL ACCOUNT

1. Need for control accounts


As all accounts are kept in different ledgers then it is more likely that a mistake will occur when a Trial Balance
is drawn up. In addi�on as the 'T' accounts are kept in different ledgers mistakes are very o�en hard to locate.
As a result accountants use Control Accounts to check whether errors have occurred in the Purchases Ledger
or the Sales Ledger. The control account acts as a type of Trial Balance for each ledger.

2. Form of control accounts


Sales Ledger Control Account

Purchase Ledger Control Account

3. Informa�on for control accounts


Sales Ledger Control Source
1 Opening debtors (Bal b/d) List of debtors drawn up at end of previous period
2 Credit sales Total from Sales Day Book
3 Returns inwards Total from Returns Inwards Day Book
4 Cheques received Cash Book: Bank column on received side (Dr)
5 Cash received Cash Book: Cash column on received side (Dr)
6 Closing debtors (Bal c/d) List of debtors drawn up from the Sales Ledger
Purchase Ledger Control Source
1 Opening Creditors (Bal b/d) List of creditors drawn up at the end of previous period
2 Credit purchases Total from purchases day book
3 Returns Outwards Total of returns outwards day book
4 Cheques paid Cash book: bank column on payments side (Cr)
5 Cash paid Cash Book : Cash column on payments side (Cr)
6 Closing Creditors (Bal c/d) List of creditors drawn up from the Purchases Ledger

Example
$
Sales Ledger Debit balances on 1st January 20X8 1 894
Total credit sales for the month 10 290
Cheques received from customers in the month 7 284
Cash received from customers in the month 1 236
Return inwards from customers during the month 296
Debit balances on the 31st January 20x8 as extracted from the sales ledger 3 368

Sales Ledger Control Account

$
Purchases Ledger Credit balances on 1st January 20X8 3 890
Cheques paid to suppliers during the month 3 620
Returns outwards to suppliers in the month 95
Purchases from suppliers in the month 4 936
Credit balances on 31st January as extracted from the purchases ledger 5 151

Purchase Ledger Control Account

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