0
What does a credit balance in the purchase ledger control account represent?
Wiki User
∙ 12y ago
Indicates monies owed to suppliers.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is opening balance control account?
we should entry the opening balance to account for total balance ,That adjustment is opening balance control
What does the final balance on a sales ledger control account represent?
it represents the amount that trade receivbles owe to the business at the end of the financial period (dr balance) credit balance represents the amount that the business owe to the debtors (minority balance)
What is sales ledger control account?
Sales control account is a summary of transactions relating to the debtors balance.the debtors ledger account is debited when there is an increase of the debtors balance and credited when there is a reduction of the debtors balance
What are Vat control accounts?
VAT Control accounts are a nominal account used to track amounts of VAT payable and reclaimable by a business during its normal activities. For each purchase and sale an amount equal to the VAT due or receivable in respect of the transaction will be applied to the account. Reviewing the account balance will show the current total liability to HMRC, although that balance may be more than is actually payable if there is a VAT return due.
Format of a debtors control account?
Debtors Control Account Balance b/d xx Cash/Bank xx Sales xx Discount Allowed xx Bank (Reverse Cheque) xx Return Inward xx Discount (cancelled) xx Bad Debts xx Other Charge by Debtor xx Contra xx Balance b/f xx total total Creditors Control Account Cash/Bank xx Balance B/d xx Discount Received xx Purchase xx Return Outward xx Others Charge By Creditors xx Contra xx Balance b/f xx total total
What is opening balance control account?
we should entry the opening balance to account for total balance ,That adjustment is opening balance control
What does the final balance on a sales ledger control account represent?
it represents the amount that trade receivbles owe to the business at the end of the financial period (dr balance) credit balance represents the amount that the business owe to the debtors (minority balance)
What is sales ledger control account?
Sales control account is a summary of transactions relating to the debtors balance.the debtors ledger account is debited when there is an increase of the debtors balance and credited when there is a reduction of the debtors balance
What are Vat control accounts?
VAT Control accounts are a nominal account used to track amounts of VAT payable and reclaimable by a business during its normal activities. For each purchase and sale an amount equal to the VAT due or receivable in respect of the transaction will be applied to the account. Reviewing the account balance will show the current total liability to HMRC, although that balance may be more than is actually payable if there is a VAT return due.
Format of a debtors control account?
Debtors Control Account Balance b/d xx Cash/Bank xx Sales xx Discount Allowed xx Bank (Reverse Cheque) xx Return Inward xx Discount (cancelled) xx Bad Debts xx Other Charge by Debtor xx Contra xx Balance b/f xx total total Creditors Control Account Cash/Bank xx Balance B/d xx Discount Received xx Purchase xx Return Outward xx Others Charge By Creditors xx Contra xx Balance b/f xx total total
How is subsidiary ledger different to the general ledger?
A subsidiary ledger is a group of similar accounts whose combined balances equal the balance in a specific general ledger account. The general ledger account that summarizes a subsidiary ledger's account balances is called a control account or master account. For example, an accounts receivable subsidiary ledger (customers' subsidiary ledger) includes a separate account for each customer who makes credit purchases. The combined balance of every account in this subsidiary ledger equals the balance of accounts receivable in the general ledger. Posting a debit or credit to a subsidiary ledger account and also to a general ledger control account does not violate the rule that total debit and credit entries must balance because subsidiary ledger accounts are not part of the general ledger; they are supplemental accounts that provide the detail to support the balance in a control account.
What are the types of Control Account?
sales control account purchases control account
Why are control account balances reportedd in external financial statements while subsidiary accounts balances are not are subsidiary accounts useful to anyone?
A control account is a summary account in the general ledger. The details that support the balance in the summary account are contained in a subsidiary ledger. The purpose of the control account is to keep the general ledger free of details, yet have the correct balance for the financial statements. The details on each customer and each transaction are recorded in the subsidiary account. Hence, subsidiary account balances are not reported in financial statements because it is not necessary to see the details for every sale or every collection transaction. Yes, subsidiary account balances are useful to the sales manager and the credit manager who will need to know detailed information on individual customers, including whether a customer recently reduced their account balance.
What are the different type of control account?
sales control account purchases control account
Why are control account balances reported in external financial statements while subsidiary account balances are not?
A control account is a summary account in the general ledger. The details that support the balance in the summary account are contained in a subsidiary ledger-a ledger outside of the general ledger. The purpose of the control account is to keep the general ledger free of details, yet have the correct balance for the financial statements. For example, the Accounts Receivable account in the general ledger could be a control account. If it were a control account, the company would merely update the account with a few amounts, such as total collections for the day, total sales on account for the day, total returns and allowances for the day, etc. The details on each customer and each transaction would not be recorded in the Accounts Receivable control account in the general ledger. Rather, these details of the accounts receivable activity will be in the Accounts Receivable Subsidiary Ledger. This works well because the employees working with the general ledger probably do not need to see the details for every sale or every collection transaction. However, the sales manager and the credit manager will need to know detailed information on individual customers, including whether a customer recently reduced their account balance. The company can provide these individuals with access to the Accounts Receivable Subsidiary Ledger and can keep the general ledger free of a tremendous amount of detail. Sourced: http://blog.accountingcoach.com/accounts-receivable-control-account-subsidiary-ledger/ (second result after googling "Control account balances and Subsidiary account balances" ps: lrn2google)
There are two types of control account what are they?
sales ledger control account and purnchase ledger control account
Advantages of a balance sheet?
you will always control the balance
