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The financial year of Ali & Co is closed on June 30, 2007. Data regarding Ali & Co is
given below:
Rs.
Opening balance
Debtors 75,000
Creditors 125,000
Closing balance
Debtors 100,000
Creditors 150,000
Sales
Cash 100,000
Credit 130,000
Purchases
Cash 80,000
Credit 100,000
Purchase returns (From credit purchases) 5,000
Receipts from debtors ? 88500
Payments to creditors ? 65000
Discount allowed 2,000
Discount received 5,000
Bad debts written off 13,000
Increase in provision for doubtful debts 2,500
Required:
Prepare Debtors control account and Creditors control account.
help me with the procedures affecting the use of control accounts to prepare periodic reconciliation statements
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Format for Debtors control account and creditors control account?
debtors
What is the methods of internal control account debtors and creditors?
ahshshj
What is sales ledger control account?
Sales control account is a summary of transactions relating to the debtors balance.the debtors ledger account is debited when there is an increase of the debtors balance and credited when there is a reduction of the debtors balance
16 In what circumstances would a non trade debtors control account be used?
i would like to know in what circumstances would a non trade debtors control account be used?
Format of a debtors control account?
Debtors Control Account Balance b/d xx Cash/Bank xx Sales xx Discount Allowed xx Bank (Reverse Cheque) xx Return Inward xx Discount (cancelled) xx Bad Debts xx Other Charge by Debtor xx Contra xx Balance b/f xx total total Creditors Control Account Cash/Bank xx Balance B/d xx Discount Received xx Purchase xx Return Outward xx Others Charge By Creditors xx Contra xx Balance b/f xx total total
Format for Debtors control account and creditors control account?
debtors
What is the methods of internal control account debtors and creditors?
ahshshj
What is sales ledger control account?
Sales control account is a summary of transactions relating to the debtors balance.the debtors ledger account is debited when there is an increase of the debtors balance and credited when there is a reduction of the debtors balance
How do you treat refund to debtors in the debtors control account?
decrease with a credit
16 In what circumstances would a non trade debtors control account be used?
i would like to know in what circumstances would a non trade debtors control account be used?
Format of a debtors control account?
Debtors Control Account Balance b/d xx Cash/Bank xx Sales xx Discount Allowed xx Bank (Reverse Cheque) xx Return Inward xx Discount (cancelled) xx Bad Debts xx Other Charge by Debtor xx Contra xx Balance b/f xx total total Creditors Control Account Cash/Bank xx Balance B/d xx Discount Received xx Purchase xx Return Outward xx Others Charge By Creditors xx Contra xx Balance b/f xx total total
What are the advantages of control accounts?
To prevent fraud To detect any error To control specific ledgers To provide the total debtors and creditors quickly whenever required
Different between credit control and salesperson?
Credit Control is the part of business which is responsible for negotiation with creditors and receiving debt timely from debtors. However, a sales person is only responsible for marketing and selling the company products.
What is debtors method?
It is related to "control" the accounts of debtors for some purposes.
How do you prepare the adjusting journal entry to record bad debt expense?
The bad debt is recorded against the asset, which is the debtors control account, or account recievable, for example company A is owed $1000 by company B, during the year, company B approaches company A and states that it is going out of business and can only pay them $600, therefore the bad debt is $400 Credit the debtors account of company b with $400 and debit bad debt expense $400
Is a control account part of the double entry system?
Yes. The balancing entry is passed in the self balancing ledger.For e.g. an increase in debtors due to sales will have the following entry passed- Debtors Ledger Adjustment a/c[In the general ledger] dr. To Sales a/c General Ledger Adjustment a/c[In the Debtors Ledger] dr. To Debtors Ledger Adjustment a/c[In The general Ledger]
Why businesses need accounts?
Businesses need accounts to control the money of the business. For example, from the Financial Statement (Profit and Loss Statement, Owners Equity Statement, Balance Sheet, Cash Flow) the manager can see the strength and weaknesses of the business. Whether the business has a lot of debtors (account receivable) or creditors (account payable). It is also important to plan for the business such as whether it is need to be expand or not. The decision can be make by knowing how much capital or cash that the business have.
