Control Accounts

Debtors Control Accounts Source Opening Balance From previous period Credit Sales Sales Day Book Receipts From Debtors Cash Receipts Book Dishonoured Cheques General Journal Discount Allowed Discount Allowed Disallowed Returns In Sales Returns Day Book Debtors Refunds Cheque Payments Book Bills Receivable Interest General Ledger Account Bad Debts Contras Closing balance C/D to next period

Debtors Control Accounts Source Opening Balance From previous period Closing balance C/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… overpaid an invoice. cleared his account & later returned goods for a refund. cleared his account & later received additional discount.

Debtors Control Accounts Source Credit Sales Sales Day Book Receipts From Debtors Cash Receipts Book Normal Transactions Invoices Payments

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

Debtors Control Accounts Source Debtors Refunds Cheque Payments Book Returns In Sales Returns Day Book If goods are returned they are credited. If these goods had been paid then the Creditor must issue a refund Cheque

Debtors Control Accounts Source Interest General Ledger Account Bills Receivable General 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

Debtors Control Accounts Source Bad Debts General Ledger Account Contras General Journal 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. Contras are debts offset between debtor and creditor accounts for the same company