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Control Accounts. Debtors Control Accounts Debtors Control Account Source Opening BalanceFrom previous period Opening BalanceFrom previous period Credit.

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Presentation on theme: "Control Accounts. Debtors Control Accounts Debtors Control Account Source Opening BalanceFrom previous period Opening BalanceFrom previous period Credit."— Presentation transcript:

1 Control Accounts

2 Debtors Control Accounts Debtors Control Account Source Opening BalanceFrom previous period Opening BalanceFrom previous period Credit SalesSales Day BookReceipts From Debtors Cash Receipts Book Dishonoured Cheques General JournalDiscount AllowedCash Receipts Book Discount Allowed Disallowed General JournalReturns InSales Returns Day Book Debtors RefundsCheque Payments Book Bills ReceivableGeneral Journal InterestGeneral Ledger Account Bad DebtsGeneral Ledger Account ContrasGeneral Journal Closing balanceC/D to next periodClosing balanceC/D to next period

3 Debtors Control Accounts Debtors Control Account Source Opening BalanceFrom previous period Opening BalanceFrom previous period Closing balanceC/D to next periodClosing balanceC/D to next period Normally the Debtors opening balance is a debit but some accounts can have a credit balance. The debtor will be owed money if he… 1)overpaid an invoice. 2)cleared his account & later returned goods for a refund. 3)cleared his account & later received additional discount.

4 Debtors Control Accounts Debtors Control Account Source Credit SalesSales Day BookReceipts From Debtors Cash Receipts Book Normal Transactions InvoicesPayments

5 Debtors Control Accounts Debtors Control Account Source 2 Dishonoured Cheques General Journal 1. Discount AllowedCash Receipts Book 3 Discount Allowed Disallowed General Journal If a debtor pays within 30 days they are given 1 discount. However if their cheque is 2 dishonoured this discount is 3 reversed

6 Debtors Control Accounts Debtors Control Account Source Debtors RefundsCheque Payments Book Returns InSales Returns Day Book If goods are returned they are credited. If these goods had been paid then the Creditor must issue a refund Cheque

7 Debtors Control Accounts Debtors Control Account Source InterestGeneral Ledger Account Bills ReceivableGeneral Journal Interest is charged on overdue accounts Bills Receivable are written promises to pay stated amounts at future dates. treated like cheques received Bills due within 12 months - current Bills due after 12 months - non-current Interest is charged on overdue accounts Bills Receivable are written promises to pay stated amounts at future dates. treated like cheques received Bills due within 12 months - current Bills due after 12 months - non-current

8 Debtors Control Accounts Debtors Control Account Source Bad DebtsGeneral Ledger Account ContrasGeneral Journal Contras are debts offset between debtor and creditor accounts for the same company If a firm owes money to a person and is owed money by the same person. The person will appear as a debtor and a creditor in the firms books.


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