Scribd
Upload
18 views9 pages

2

The document outlines the process of updating the Sales Ledger Control Account (SLCA) and Sales Ledger Account (SLA), emphasizing that SLCA is an asset account reflecting total outstanding amounts from trade receivables. It details how SLCA is calculated using totals from various journals without referencing individual ledger accounts, while SLA reflects the total balances of individual credit customer accounts. Errors affecting total amounts in the books of prime entry impact SLCA, whereas SLA is updated based on errors affecting individual customer accounts.

Uploaded by

kriti.kastiya05
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
18 views9 pages

2

The document outlines the process of updating the Sales Ledger Control Account (SLCA) and Sales Ledger Account (SLA), emphasizing that SLCA is an asset account reflecting total outstanding amounts from trade receivables. It details how SLCA is calculated using totals from various journals without referencing individual ledger accounts, while SLA reflects the total balances of individual credit customer accounts. Errors affecting total amounts in the books of prime entry impact SLCA, whereas SLA is updated based on errors affecting individual customer accounts.

Uploaded by

kriti.kastiya05
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

ANSWERS

Notes on Control Account

Updation of Sales ledger control account and sales ledger account:


Sales ledger control account

1. Sales ledger control account is an account similar to trade receivables account and therefore it is an
asset account.

2. It is made to calculate the total amount outstanding from the trade receivables at the end of the
period.

3. All the values are taken from the books of prime entry. The SLCA includes total credit sales, total sales
return, total money received from the trade receivables, total discount allowed, total bad debts written
off, total refund to the credit customers, total interest due on overdue accounts, total bounced cheques.

4. In order to make SLCA, only the totals from the sales journal, sales returns journal, cash book and
general journal are taken. No amount is taken from the ledger accounts.

5. Any error which affects the total of the concerned book of prime entry effect the SLCA. Any entry not
affecting the total of BOPE does not affect SLCA.

6. While updating SLCA, any error reducing the trade receivables should be added and vice versa.

Sales ledger account

1. The balance shown by the sales ledger account is the total of all the balances of the credit customers
accounts in the sales ledger.

2. While updating SLA, only those errors are considered which affect the individual credit customers
accounts in the sales ledger. Any error reducing the closing balance ( outstanding amount from the
credit customer ) should be added and vice versa.

Few errors will affect both SLCA and SLA and few will affect only one of the two.

You might also like