Accounting – 3.4 Control accounts | e-Consult
3.4 Control accounts (1 questions)
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Here's how the transactions would be recorded and the impact on the control accounts:
1st July - Credit Sale to PQR Ltd (£300):
- Sales Journal: A credit entry would be made to the Sales Journal, recording the sale to PQR Ltd for £300. The entry would include the date, PQR Ltd as the customer, and the invoice number.
- Sales Control Account: The Sales Control Account in the general ledger would be debited by £300. This increases the total credit sales.
5th July - Credit Purchase from LMN Co (£150):
- Purchase Journal: A debit entry would be made to the Purchase Journal, recording the purchase from LMN Co for £150. The entry would include the date, LMN Co as the supplier, and the invoice number.
- Purchase Control Account: The Purchase Control Account in the general ledger would be credited by £150. This increases the total credit purchases.
10th July - Cash Payment from PQR Ltd (£75):
- Cash Book: A credit entry would be made to the Cash Book, recording the cash receipt from PQR Ltd. The entry would include the date, PQR Ltd as the source of the cash, and the amount.
- Cash Control Account: The Cash Control Account in the general ledger would be debited by £75. This increases the cash balance.