DEBTORS’ CONTROL ACCOUNT

Also known as the Sales Ledger Control Account.

 

Sales Ledger Control Account is a summary of the total individual sales ledger.

 

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

 

The Sales 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

Sales ledger balances with the Debtors Control Account balance.

 

 

				Sales Ledger Control Account
Balance b/d				xxx			Sales Return				xxx
Credit Sales				xxx			Discount Allowed				xxx
							Bad Debts written off				xxx
							Contra Entries				xxx
							Bank				xxx
							Balance c/d				xxx
				xxx							xxx
Note:
Increases the amount owed by							Decreases the amount owed by
Trade Debtors							Trade Debtors

 

 

 

Contra

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

 

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

 

-          Subtotal error in sales control account

-          Subtotal error in the sales ledger account listing

-          Transcription error from cash book or daybook

-          Incomplete listing of the individual sales 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.

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