Control Accounts And Subsidiary Ledgers

Question 1

What is the first part of recording a transaction when it’s simplified?

Answer 1

The first part is the books of prime entry

Question 2

What is the second part of recording a transaction when it’s simplified?

Answer 2

Transferring the amounts from the books of prime entry into the ledger accounts within the general ledger where the double entry takes place

Question 3

What is the third part of recording a transaction when it’s simplified?

Answer 3

The subsidiary ledgers.. individual receivable and payable accounts known as the receivables ledger and the payables ledger

Question 4

What will form the basis of accounting entries?

Answer 4

Invoices, credit notes, receipts and payments

Question 5

Define the general ledger?

Answer 5

Contains all the ledger accounts for recording transactions occurring within an entity

Question 6

What is the general ledger?

Answer 6

Where the double entry takes place in the appropriate ledger accounts.

Question 7

What are two more ledger accounts?

Answer 7

The receivables and the payables accounts.

Question 8

When credit sales are posted to receivables and credit purchases to payables, how is this balanced off?

Answer 8

See how much is owed to us by our customers and owed by our suppliers in total

Question 9

How can we see how many is owed by individual receivables and payables?

Answer 9

Another set of ledger accounts, a subsidiary ledger,which records the amounts owed

Question 10

What do the receivables account in the general ledger get referred to?

Answer 10

As the receivables ledger control account

Question 11

Define receivables ledger control account

Answer 11

Shows the total amount due to us from our credit customers… may sometimes be referred to as payables ledger control account

Question 12

Define payables ledger control account

Answer 12

Contains the total value of all the invoices and credit notes received and cash payments made to credit suppliers for a given period. Sometimes referred to as purchase ledger control account

Question 13

Define subsidiary ledger

Answer 13

Provided details behind the entries in the general ledger… subsidiary ledgers are maintained for individual receivables and payables

Question 14

What can subsidiary ledgers be known as

Answer 14

Memorandum ledger

Question 15

Do subsidiary require double entry system

Answer 15

No

Question 16

Define subsidiary receivables ledger

Answer 16

More commonly referred to a receivables ledger… it is a set of accounts for individual receivables

Question 17

Define subsidiary payables ledger

Answer 17

More commonly known as the payables ledger…set of accounts for individual payables

Question 18

How do we keep track of information from the receivables?

Answer 18

Receivables ledger, this contains a separate ledger account for each individual receivables…same for the payables ledger