AccountingCode 7707
Control accounts
What this topic asks you to be able to do
- the reasons for keeping control accounts for the purchases ledger and for the sales ledger
- the way the books of prime entry supply the data that goes into control account entries
- how to draw up control accounts for the sales ledger and the purchases ledger, entering opening and closing balances (both debit and credit, in each account), credit sales and purchases, receipts and payments, cash discounts, returns, refunds, irrecoverable debts, dishonoured cheques, contra entries and interest on overdue accounts
- the effect that recording business transactions digitally has on how control accounts are produced and used