Ms Snow Assessed Task Flashcards
Where is the sales ledger control account?
It is the ‘Trade receivables’ figures under ‘Current Assets’ on the statement of financial position.
It is a Debit balance in the trial balance and General Ledger because it is an Asset.
What does the sales ledger control T account show?
This T-Account shows the total owed by all of the credit customers of a business
Sales ledger control account - debit side
Balance b/d
Credit sales from the Sales Journal
Dishonoured cheques
Interest charged to customers
Credit balances c/d
Total
Balance b/d
Sales ledger control account - credit side
Money received from trade receivables
Discounts allowed
Sales returns / Returns in
Irrecoverable debts written off
Contra entries against payables ledger
Balance c/d
Total
Credit balances c/d
Do cash sales appear in the Sales Ledger Control Account?
No
What is the balance on the Sales Ledger Control Account the same as?
The total of all the individual accounts in the Receivables Ledger
What does the purchase ledger control T-Account show?
This T-Account shows the total owed to all of the credit suppliers of a business
Where is the purchase ledger control account?
It is the ‘Trade payables’ figures under ‘Current Liabilities’ on the statement of financial position. It is a credit balance in the trial balance and general ledger because it is a liability.
What is on the purchase ledger control account - debit side
Money paid to trade payables
Discounts received
Purchases returns / Returns out
Contra entries against receivables ledger
Balance c/d
Total
Debit balance b/d
What is on the purchase ledger control account - credit side
Balance b/d
Credit purchases from Purchases Journal
Dishonoured cheques
Interest charged by payables
Debit balances c/d
Total
Balance b/d
Do cash purchases appear in the purchase ledger control account?
No they do not
What should the balance on the purchase ledger control account and payable ledger be?
They should both be the same
