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Q22-2.3 Principles of Bookkeeping Controls > Control Accounts > Flashcards

Control Accounts Flashcards

1
Q

What are the 6 types of ledger control accounts?

A
  1. receivables
  2. payables
  3. cash/bank
  4. petty cash
  5. VAT
  6. wages
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2
Q

What is a contra?

A

-where a customer is also a supplier
-the lower of the 2 amounts that are owed will be ‘offset’

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3
Q

Where are contras posted?

A

-always posted on payments side of the account
-Cr in receivables
-Dr in payables

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4
Q

Is the RCLA part of double entry?

A

-yes

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5
Q

Is the subsidiary ledger part of double entry?

A

-no

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6
Q

What must both accounts be updated with?

A

-sales daybook
-sales return
-cash book
-discounts allowed

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7
Q

What happens if balances in RCLA and subsidiary don’t balance?

A

need to correct errors in:
-control account
-individual sales ledger

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8
Q

What are some errors affecting RCLA?

A

-book of prime entry has been undercast or overcast
-postings have been made to wrong side of RCLA
-entry made in receivables but not in RCLA
-incorrect amount posted to RCLA

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9
Q

What are some errors affecting the receivables ledger?

A

-entry from book of prime entry has not been posted to receivables
-posted to wrong side
-incorrect amount
-balance incorrectly casted

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10
Q

What is output tax?

A

-VAT on sales

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11
Q

What is input tax?

A

-VAT on purchases

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12
Q

What does it mean if the balance b/d is on the Dr side of VAT control?

A

-money payable by HMRC

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13
Q

What does it mean if balance b/d is on the Cr side of VAT control?

A

-money owed to HMRC

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14
Q

What things would be recorded on the Dr side of receivables?

A
  1. Invoices
  2. Balance b/f
  3. Dishonoured cheques
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15
Q

What things would be recorded on the Dr side of payables?

A
  1. Credit notes
  2. Payments
  3. Balance c/d
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16
Q

What Books of prime entry VAT totals would be recorded on Cr side of VAT CA?

A
  1. sales daybook
  2. purchases return daybook
  3. cash receipts book
17
Q

Dr or Cr sales daybook VAT?

A

Cr

18
Q

Do we Dr or Cr purchase daybook VAT?

A

Dr

19
Q

Dr or Cr cash book receipts VAT?

A

Cr

20
Q

Dr or Cr petty cash payments VAT?

A

Dr

21
Q

Dr or Cr bad debt write off VAT?

A

Dr

22
Q

Dr or Cr discounts allowed VAT?

A

Dr

23
Q

Dr or Cr discounts received VAT?

A

Cr

24
Q

Discounts received double entry

A

Dr payables
Cr discounts rec
Cr VAT

25
Q

Discounts allowed double entry

A

Cr receivables
Dr disc all
Dr VAT

Q22-2.3 Principles of Bookkeeping Controls (4 decks)

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