CREDITORS’ CONTROL ACCOUNT

Also known as the Purchases Ledger Control Account.

 

Purchases Ledger Control Account is a summary of the total individual purchase ledger.

 

The individual purchase ledger does not form part of the double entry system.

 

The Purchases Ledger Control Account forms part of the double-entry system.

 

The accuracy of the accounting entries can be managed by reconciling the total of the

Purchase ledger balances with the Creditors Control Account balance.

 

 

				Purchases Ledger Control Account
Purchase Returns				xxx			Balance b/d				xxx
Discount Received				xxx			Credit Purchases				xxx
Contra entries				xxx
Bank				xxx
Balance c/d				xxx
				xxx							xxx
Note:
Decreases the amount owed to							Increases the amount owed to
Trade Creditors							Trade Creditors

 

 

Contra

This will occur when a supplier is a creditor to a company is also a debtor of the company.

 

 

 

Possible reasons why there are errors in either the Purchases Control or Ledger Account

 

 

-          Subtotal error in purchases control account

-          Subtotal error in the purchases ledger account listing

-          Transcription error from cash book or daybook

-          Incomplete listing of the individual purchases ledger

 

 

 

IMPORTANT REMINDER

 

THIS IS TO PROVIDE STUDENTS A COURTESY REMINDER THAT THIS BLOG IS CATERED

TO HELP ACCOUNTANCY STUDENTS AT BASIC LEVEL TO GAIN A QUICK SUMMARY OF

MAJORLY ALL THE BASIC COMPONENTS OF THE BOOK-KEEPING AND ACCOUNTING STUDIES.

 

IT IS NOT MEANT TO PROVIDE A COMPLETE CONTENT OF THE SUBJECT MATTER.

 

THEREFORE, STUDENTS ARE ADVISED TO TAKE THIS INFORMATION RESOURCE AS A SUPPLEMENTARY READING ONLY.

 

THIS READING MATERIAL IS ONLY A SUMMARY OF WHAT IS ESSENTIAL IN GETTING  A GOOD

UNDERSTANDING BUT NOT AN EXHAUSTIVE ONE OF THE RELATED TOPIC.

Feel free to visit our websites,like our facebook page and follow us on twitter for updates: http://lkyapcompanies.com/, http://www.fortunelkmanagement.com/, http://www.companymalaysia1.com/,https://www.facebook.com/lkyap3658 and https://twitter.com/@lkyap3658