Where control accounts are maintained, they are effective inreducing the time it takes to ascertain the total amount owed byreceivables and owed to payables. Not all businesses maintain a receivables ledger control accountand purchases ledger control account, however where they do it isusually these control accounts that form part of the double entrysystem. It is normally the case that the control accounts form part ofthe double entry. Where there are individual accounts in a receivables or payablesledger AND a control account in the general ledger, only one can formpart of the double entry system. The accounts payable ledger contains an account for each credit supplier to show how much they are owed.Īn account to summarise this information, the payables control account, is normally contained within the general ledger.The accounts receivable ledger contains an account for each credit customer to show how much each one owes.Īn account to summarise this information, the receivables control account, is normally contained within the general ledger.The general ledger contains all accounts or a summary of all accounts necessary to produce the trial balance and financial statements.illustrate the use of the journal and the posting of journal entries into ledger accounts.list the necessary controls and security over petty cash that would normally be found in a business.explain the importance of using the imprest system to control petty cash.illustrate the typical format of the petty cash book.explain the need for a record of petty cash transactions.record cash transactions using the cash book.account for contras between trade receivables and payables.explain the nature and purpose of control accounts for the accounts receivable and accounts payable ledgers.explain the division of the ledger into sections.post day book totals to the ledger accounts.record credit sale and purchase transactions (with and without sales tax) using day books. ![]() outline the form of accounting records in a typical manual system.describe the contents and purpose of different types of business documentation.identify the main data sources and records in an accounting system.Upon completion of this chapter you will be able to: 1 Chapter 10: Books of prime entry and control accountsĬhapter 10: Books of prime entry and control accounts.
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