Back to: FINANCIAL ACCOUNTING SS2
Welcome to class!
In today’s class, we will be talking more about the control account. Enjoy the class!
Control Account II
Illustration: The following balance was extracted from the books of Olotun Enterprises on 30th October 1993 N
Purchase 1993 7,532
Purchase ledger 1/10/93 7,948
Sales ledger 1/10/93 90,454
Sales day book 77,530
Returns outwards 3,960
Returns inwards 14,180
Cheque received from customers 56,680
Cheque paid to suppliers 61,860
Cash overpaid to supplier 240
Discount allowed 3,774
Discount received 2,678
Credit notes received 280
Debit notes issue 530
prepare
(a) Sales ledger control account
(b) Purchase ledger control account
EVALUATION
- Draw up the format of Sales Ledger Control Account with ten items.
- Draw up the format of Purchases Ledger Control Account with twelve items.
Sales Ledger Control Account
N N
1993 Oct. Balance b/f 7,948 1993 Oct. Return inwards 14,180
Sales 77,530 Cheques received from customers 56,680
Debit notes issued 530 Discount allowed 3,774
Balance c/d 11,374
86,008 86,008
Purchase Ledger Control Account N N
1993 Oct.Returns Outwards 3,960 1993 Oct. Balance b/f 7,532 Cheques paid to supply 61,860 Purchases 90,454 Credit note received 280 Cash overpaid 240
Discount received 2,678
Balance c/d 29,448
98,226 98,226
EVALUATION
- Explain what is meant by the following (a) Total debtors control account (b) Total creditors control account.
- State three reasons for preparing Control Accounts.
In our next class, we will be talking about the Accounts of Non-Profit-Making Organizations. We hope you enjoyed the class.
Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.
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