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The financial year of Ali & Co is closed on June 30, 2007. Data regarding Ali & Co is
given below:
Rs.
Opening balance
Debtors 75,000
Creditors 125,000
Closing balance
Debtors 100,000
Creditors 150,000
Sales
Cash 100,000
Credit 130,000
Purchases
Cash 80,000
Credit 100,000
Purchase returns (From credit purchases) 5,000
Receipts from debtors ? 88500
Payments to creditors ? 65000
Discount allowed 2,000
Discount received 5,000
Bad debts written off 13,000
Increase in provision for doubtful debts 2,500
Required:
Prepare Debtors control account and Creditors control account.
What else can I help you with?
Format for Debtors control account and creditors control account?
debtors
What is the methods of internal control account debtors and creditors?
ahshshj
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
Does the returns inwards affect the debtors control account in the general ledger?
Yes, returns inwards affect the debtors control account in the general ledger. When goods are returned by customers, it results in a reduction of accounts receivable, which is reflected in the debtors control account. This decrease is typically recorded as a debit entry to the returns inwards account and a corresponding credit entry to the debtors control account, thereby adjusting the total amount owed by customers.
16 In what circumstances would a non trade debtors control account be used?
i would like to know in what circumstances would a non trade debtors control account be used?
Format for Debtors control account and creditors control account?
debtors
What is the methods of internal control account debtors and creditors?
ahshshj
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
How do you treat refund to debtors in the debtors control account?
decrease with a credit
Does the returns inwards affect the debtors control account in the general ledger?
Yes, returns inwards affect the debtors control account in the general ledger. When goods are returned by customers, it results in a reduction of accounts receivable, which is reflected in the debtors control account. This decrease is typically recorded as a debit entry to the returns inwards account and a corresponding credit entry to the debtors control account, thereby adjusting the total amount owed by customers.
16 In what circumstances would a non trade debtors control account be used?
i would like to know in what circumstances would a non trade debtors control account be used?
Distinguish between a debtor's account and a debtors' control account.?
A debtor's account refers to the individual account of a specific customer who owes money to a business for goods or services provided on credit. In contrast, a debtors' control account is a summary account in the general ledger that aggregates the total amounts owed by all debtors, providing an overview of the total receivables for the business. The debtor's account tracks transactions for a single customer, while the debtors' control account consolidates these individual accounts to reflect the overall debt situation.
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
Is it sales ledger control account and debtors control account are same?
Yes, the sales ledger control account and the debtors control account are essentially the same. Both terms refer to an account that summarizes all transactions related to credit sales and outstanding amounts owed by customers. This account serves to reconcile the total receivables recorded in the sales ledger with the general ledger, ensuring accuracy in financial reporting.
What is the aim debtors and creitors control accounts?
The aim of debtors and creditors control accounts is to provide a summary of all transactions related to accounts receivable (debtors) and accounts payable (creditors) in a business. These control accounts help in tracking the total amounts owed by customers and owed to suppliers, ensuring accuracy in financial records. They facilitate easier reconciliation with individual customer and supplier accounts, thereby improving overall financial management and reporting efficiency. Additionally, they aid in identifying discrepancies and monitoring cash flow.
What are the advantages of control accounts?
To prevent fraud To detect any error To control specific ledgers To provide the total debtors and creditors quickly whenever required
Different between credit control and salesperson?
Credit Control is the part of business which is responsible for negotiation with creditors and receiving debt timely from debtors. However, a sales person is only responsible for marketing and selling the company products.
