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Control Accounts
Control Accounts
Four main control accounts– Sales Ledger Control Account– Purchase Ledger Control Account– VAT Control Account– Wages Control Account
What books of prime entry records information about ‘Credit Sales’?
• Sales day book• Sales returns day book• Cash book
Sales Ledger Control Account
This reconciles the totals of a number of subsidiary accounts.- Credit sales from sales day book- Sales returns from sales returns day book- Payments received from the cash book- Settlement discount allowed from the cash book
Queston 1
Question 1
Question 1Sales Day Book (SD21)
Date CustomerInvoice number Folio Gross VAT Net
03-May A 45 SL01 240.00 40.00 200.00
05-May C 46 SL02 144.00 24.00 120.00
08-May B 47 SL03 180.00 30.00 150.00
15-May C 48 SL04 264.00 44.00 220.00
20-May B 49 SL05 120.00 20.00 100.00
28-May A 50 SL06 216.00 36.00 180.00
Total
Question 1Sales Day Book (SD21)
Date CustomerInvoice number Folio Gross VAT Net
03-May A 45 SL01 240.00 40.00 200.00
05-May C 46 SL02 144.00 24.00 120.00
08-May B 47 SL03 180.00 30.00 150.00
15-May C 48 SL04 264.00 44.00 220.00
20-May B 49 SL05 120.00 20.00 100.00
28-May A 50 SL06 216.00 36.00 180.00
Total 1164.00 194.00 970.00
Cashbook DR Cash Book - Debit Side - Receipts
Date Details Ref Bank VATDiscount Allowed
Cash Sales
Trade Receivab
les06-May B SL02 117.50 117.5010-May A SL01 225.60 9.40 225.6013-May C SL03 200.00 200.0020-May A SL01 225.60 9.40 225.6028-May C SL03 100.00 100.0030-May B SL02 176.25 176.25
Totals
General Ledger
Account
Debit Entry
Credit Entry
Cashbook DR Cash Book - Debit Side - Receipts
Date Details Ref Bank VATDiscount Allowed
Cash Sales
Trade Receivab
les06-May B SL02 117.50 117.5010-May A SL01 225.60 9.40 225.6013-May C SL03 200.00 200.0020-May A SL01 225.60 9.40 225.6028-May C SL03 100.00 100.0030-May B SL02 176.25 176.25
Totals 1044.95 0.00 18.80 0.00 1044.95
General Ledger
Account
Debit Entry Bank
Discounts Allowed
Credit Entry VAT
Trade Receivables
Trade Receivable
s
Purchases Ledger Control Account
This reconciles the totals of a number of subsidiary accounts.- Credit purchases from purchases day book- Purchases returns from purchases returns day book- Payments made from the cash book- Settlement discount received from the cash book
Question 2
Question 2
Customer InvoiceNumber
SupplierCode
InvoiceTotal
£
VAT£
Net£
Rowley Ltd 7869 PL 54 3000.00 500.00 2500.00Jipsum plc 323980 PL 02 3840.00 640.00 3200.00Total
Purchase Day Book
Customer InvoiceNumber
SupplierCode
InvoiceTotal
£
VAT£
Net£
Rowley Ltd CN627 PL 54 96.00 16.00 80.00Jipsum plc CN08 PL 02 480.00 80.00 400.00Total
Purchase Returns Day Book
Question 2
Customer InvoiceNumber
SupplierCode
InvoiceTotal
£
VAT£
Net£
Rowley Ltd 7869 PL 54 3000.00 500.00 2500.00Jipsum plc 323980 PL 02 3840.00 640.00 3200.00Total 6840.00 1140.00 5700.00
Purchase Day Book
Customer InvoiceNumber
SupplierCode
InvoiceTotal
£
VAT£
Net£
Rowley Ltd CN627 PL 54 96.00 16.00 80.00Jipsum plc CN08 PL 02 480.00 80.00 400.00Total 576.00 96.00 480.00
Purchase Returns Day Book
Question 2Cashbook
Details Ref Bank£
Vat£
DiscountReceived
£
Cashpurchases
£
Purchase Ledger
£
Sundry£
Rowley Ltd PL 54 2843.50 2843.50
Jipsum plc PL 02 3125.50 140.00 3125.50
Cash Purchase
720.00 120.00 600.00
TotalGeneral ledger account
Debitentry
Credit entry
Question 2Cashbook
Details Ref Bank£
Vat£
DiscountReceived
£
Cashpurchases
£
Purchase Ledger
£
Sundry£
Rowley Ltd PL 54 2843.50 2843.50
Jipsum plc PL 02 3125.50 140.00 3125.50
Cash Purchase
720.00 120.00 600.00
Total 6689.00 120.00 140.00 600.00 5969.00 0General ledger account
Debitentry
Credit entry
Question 2Cashbook
Details Ref Bank£
Vat£
DiscountReceived
£
Cashpurchases
£
Purchase Ledger
£
Sundry£
Rowley Ltd PL 54 2843.50 2843.50
Jipsum plc PL 02 3125.50 140.00 3125.50
Cash Purchase
720.00 120.00 600.00
Total 6689.00 120.00 140.00 600.00 5969.00 0General ledger account
Debitentry
VAT PLCA Purchases PLCA
Credit entry Bank
Question 3 - Answer
Reconciliation of Sales Ledger to Sales Ledger Control Account
Sales Ledger Control Account Balance 1764.97
Sales Ledger Balances
Virgo Partners 421.38
McGowan & Son 595.09
JJ Westrope 444.73
Jacks Ltd 303.77
1764.97
Sales Ledger Control Account Reconciliation
Periodic check between the balance on the sales ledger control account and the total of the individual balances on the sales ledger accounts.
Total of balances on sales ledger
accounts
Sales Ledger Control AccountDebtors Control
Trade Receivables
Balance c/d
Dr Cr
Date Details £ Date Details £
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00
SDB 10290.00
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00 CB 7284.00
SDB 10290.00
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00 CB 7284.00
SDB 10290.00 CB 1236.00
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00 CB 7284.00
SDB 10290.00 CB 1236.00
SRDB 296.00
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00 CB 7284.00
SDB 10290.00 CB 1236.00
SRDB 296.00
12184.00 12184.00
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00 CB 7284.00
SDB 10290.00 CB 1236.00
SRDB 296.00
Balance c/d 3368.00
12184.00 12184.00
Sales Control Account Activity Q4
Sales Control Account Activity Q4
Dr Cr
Date Details £ Date Details £
01-Jan Balance b/f 1894.00 CB 7284.00
SDB 10290.00 CB 1236.00
SRDB 296.00
Balance c/d 3368.00
12184.00 12184.00
Balance b/d 3368.00
Question 4
Dr Sales Ledger Control Account Cr
Date Details £ Date Details £
01-Jan Balance b/d 1894.00 CB 7284.00
SDB 10290.00 CB 1236.00
SRDB 296.00
Balance c/d 3368.00
12184.00 12184.00
Balance b/d 3368.00
Questions 5 & 6
Question 7
Dr Sales Ledger Control Account Cr
Date Details £ Date Details £
Why Reconcile?
Purchase Ledger Control Account
Try questions 9, 10 & 11
VAT Control Account• Used to help prepare the VAT return. The balance on the VAT control
account should equal the amount on the VAT return.
• Balance could be a debit (if amount collected from VAT on sales is less than the VAT paid on purchases)
• Balance could be a credit (if amount collected from VAT on sales is more than the VAT paid on purchases)
• Information in the control account is obtained from the books of prime entry
What books of prime entry would we use? And what information is contained in them that we would use?
VAT Control Account
Dr Cr
VAT Control Account
Dr Cr
Balance b/d X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT on sales returns X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT on sales returns X VAT on purchase returns X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT on sales returns X VAT on purchase returns X
VAT on recoverable debts written off
X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT on sales returns X VAT on purchase returns X
VAT on recoverable debts written off
X VAT refunded by HMRC X
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT on sales returns X VAT on purchase returns X
VAT on recoverable debts written off
X VAT refunded by HMRC X
VAT paid to HMRC
VAT Control Account
Dr Cr
VAT on credit purchase X Balance b/d X
VAT on cash purchase X VAT on credit sales X
VAT on petty cash purchases X VAT on cash sales X
VAT on sales returns X VAT on purchase returns X
VAT on recoverable debts written off
X VAT refunded by HMRC X
VAT paid to HMRC X
VAT Control Account
£ £
Credit Purchases 750 Credit Sales 900
Sales returns 10 Purchase returns 5
Cash purchases 150 Cash Sales 200
Balance c/d 195
1105 1105
Balance B/d 195
Question 18
Errors!
Errors & the SLCAi.e. your Sales Ledger does not
balance with the SLCADr Sales Ledger Control Account Cr
Date Details £ Date Details £
Errors & the SLCAi.e. your Sales Ledger does not
balance with the SLCADr Sales Ledger Control Account Cr
Date Details £ Date Details £
June Balance b/d 41,774
a) The SDB was under cast by £100
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774
a) The SDB was under cast by £100
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774
June SDB under cast 100
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774
June SDB under cast 100
b) A page from the SRDB was not posted £450
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100
b) A page from the SRDB was not posted £450
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100
c) An invoice from SDB has been posted as to the Sales Ledger as £769
instead of the correct figure of £679
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100
d) A discount allowed to one customer of £16 has been entered on the wrong
side of the Sales Ledger
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100
e) An irrecoverable debt of £210 has been written off in the customers
individual account but not in the SLCA
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100 June Bad Debt 210
e) An irrecoverable debt of £210 has been written off in the customers
individual account but not in the SLCA
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100 June Bad Debt 210
f) A credit balance of £125 in the sales ledger had been listed as a debit
balance
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100 June Bad Debt 210
41,874 41,874
Balance the SLCA
Dr Sales Ledger Control Account CrDate Details £ Date Details £
June Balance b/d 41,774 June SRDB 450
June SDB under cast 100 June Bad Debt 210
June Balance c/d 41,214
41,874 41,874
July Balance b/d 41,214
Balance the SLCA
Sales Ledger £
Original total of balances
Amended list of balances
Amended Sales Ledger Control A/C
Sales Ledger £
Original total of balances 41,586
Amended list of balances
Amended Sales Ledger Control A/C
Sales Ledger £
Original total of balances 41,586
Amended list of balances
Amended Sales Ledger Control A/C 41,214
Sales Ledger £
Original total of balances 41,586
Amended list of balances
Amended Sales Ledger Control A/C 41,214
Sales Ledger £
Original total of balances 41,586
c) -90
Amended list of balances
Amended Sales Ledger Control A/C 41,214
Sales Ledger £
Original total of balances 41,586
c) -90
d) -32
Amended list of balances
Amended Sales Ledger Control A/C 41,214
Sales Ledger £
Original total of balances 41,586
c) -90
d) -32
f) -250
Amended list of balances
Amended Sales Ledger Control A/C 41,214
Sales Ledger £
Original total of balances 41,586
c) -90
d) -32
f) -250
Amended list of balances 41,214
Amended Sales Ledger Control A/C 41,214
