Scribd
Upload
24 views

Accounting Unit Test 1 - Group3

Acc

Uploaded by

mqz6844dqj
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
24 views

Accounting Unit Test 1 - Group3

Acc

Uploaded by

mqz6844dqj
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
You are on page 1/ 5

Grade 11A/B Accounting Unit test 1

Trade receivables ledger control


accounts
Done by: Hamdi, Nishal, Dhiren, Azaam
What is a trade receivables control account?
It is an account that summarizes the customer accounts in
the receivables ledger, and only includes sales that are on
credit Examples of information that
might be recorded into the
sales ledger control account
Advantages of control accounts
helps locate any arithmetic errors
Helps prevent fraud - as its checked by senior members of the 1. Credit sales - $650
accounting team 2. Bad debts - $90
Information for management- as balances of trade receivables 3. Sales returns - $50
and payables will we available maximizing speeds of extracting 4. Discounts allowed - $20
information
5. Money received from
debtors - $400

Disadvantages of control accounts


errors in business documents will be caried through
Errors of omission and commission will not be revealed
An account produced financial
Step 1 : Identify the relevant
information that needs to be information needed to be recorded
recorded into the sales ledger into the sales ledger control account
control account
step 2 : identify which side the
(1.1.22) Cash sales - $800 information belongs to, (Debit or
(1.4.22) Credit sales - $650 (Credit) Credit)
(1.7.22) Bad debts - $90 (Debit)
(1.9.22) Sales returns - $50 (Debit) step 3 : record information that
(1.11.22) Discounts allowed - $20 (Debit) should go on the debit side, onto the
(1.13.22) Purchase returns - $70
credit side of the sales ledger
(1.16.22) Money received from (Debit)
control account
debtors - $400
(1.23.22) Purchase of equipment
step 4 : subtract the larger total
- $30
(1.27.22) Purchase returns - $80 from the smaller total and balance
it
TRADE RECEIVABLES LEDGER CONTROL ACCOUNT FOR DECEMBER 2022

Date description Amount $ Date Description Amount $

1.4.22 Credit Sales 420 1.7.22 Bad Debts 90

1.9.22 Sales Returns 50

1.11.22 Discount Allowed 20

1.16.22 Receivables 400

31.1.22 560

31.1.22 Balance C/D 140

1.2.22 Balance B/D 140


Thank you

You might also like