Theory question 101
Control AccountsSection A – Theory of Financial Accounting (answer two questions only from this section)
1. List three items and the source from which they are transferred into each of the following accounts. (a) Sales Ledger Control; (b) Purchases Ledger Control.
Show the model answer
(a) Sales ledger control (any three): opening debtors – balance b/d from last period; credit sales – sales day book; returns inwards – returns inwards book; cash/cheques received and discount allowed – cash book; bad debts and contra entries – journal; dishonoured cheques – cash book.
(b) Purchases ledger control (any three): opening creditors – balance b/d; credit purchases – purchases day book; returns outwards – returns outwards book; cash/cheques paid and discount received – cash book; contra entries – journal; bills payable – bills payable book/journal.
Pair each item with the book of original entry it comes from.