Business HL Control Accounts

Kelly090

I've noticed creditor's control accounts and debtor's control accounts come up every year in the short questions. I know each question is only worth four marks but every mark counts! Can anybody briefly explain to me how to do these as we haven't touched on them in class. Thanks in advance!

IrishLassie26

Control accounts are very simple to use. From completing general ledger questions you will know you debit the receiver and credit the giver. For debtors and creditors accounts info is put on the debit side if the debtor is receiving (sales) or the credit side if giving (sales returns) so it will be the opposite to the general ledger.
For a control account you simply add up each side (debit and credit) and put the highest total between two lines on both the debit and credit side. Then you subtract the smaller total from the total which you have placed between the two lines. This answer is then placed on the smaller side so it is equal to the greater total. You write balance c/d (carried down) in details on the smaller side and then place it on the other side below the double lines and write balance b/d (brought down) in details. The account is now balanced.

I`ve tried to explain it as simple as I can but I understand it can be difficult to understand if you havent a clue what I`m on about. Let me know if you need it explained further!

Kelly090

IrishLassie26 wrote: »

Control accounts are very simple to use. From completing general ledger questions you will know you debit the receiver and credit the giver. For debtors and creditors accounts info is put on the debit side if the debtor is receiving (sales) or giving (sales returns) so it will be the opposite to the general ledger.
For a control account you simply add up each side (debit and credit) and put the highest total between two lines on both the debit and credit side. Then you subtract the smaller total from the total which you have placed between the two lines. This answer is then placed on the smaller side so it is equal to the greater total. You write balance c/d (carried down) in details and then place it on the other side below the double lines and write balance b/d (brought down) in details. The account is now balanced.

I`ve tried to explain it as simple as I can but I understand it can be difficult to understand if you havent a clue what I`m on about. Let me know if you need it explained further!

Thank you !!!!! you have no idea how much that has helped !! Thanks so much

needhelpquick

I remember this by ..


Creditors Control Account
Debit -
Credit +

Debtors Control Account
Debit +
Credit -

+ Is anything that increases amount owed, - decreases amount owed.

Hope this helps

Kelly090

needhelpquick wrote: »

I remember this by ..


Creditors Control Account
Debit -
Credit +

Debtors Control Account
Debit +
Credit -

+ Is anything that increases amount owed, - decreases amount owed.

Hope this helps

Yes it does help! Thank you!!

needhelpquick

Kelly090 wrote: »

Yes it does help! Thank you!!

Welcome