University:
Cypress College
Course:
ACCT 101 C | Financial Accounting
Academic year:

2022
Views:

398

Pages:

9
Author:

Aniya Medina

CH #14 - Control Account Reconciliation Every transaction → Journal entry → Ledger For all receivables → Journal → Ledger (Individually) transaction Total receivables = Total of all individual ledgers. To reconcile/check, we make a Receivable Ledger Control A/c for receivables: | Receivable Ledger Control A/c | | --- | --- | --- | | Total Opening | Total Sales | Total Cash Received | | | Bal c/d | (Total Receivables) | Double Entry for Total Sales (Credit) at End of Day: Dr: Receivables Ledger Control A/c Cr: Sales Revenue Double Entry for Total Purchases (Credit) at End of Day: Dr: Purchases Cr: Payables Ledger Control A/c Receivables Ledger Control Account: Receivables = Asset → Dr Increase in Receivables → Dr Decrease in Receivables → Cr | Receivables Ledger Control A/c | | --- | --- | | Dr | Cr | | Bal b/f (Dr) | Bal b/f (Cr) | | Credit Sales | Sales Return | | Bank Dishonored Cheques | Bank Payment to Receivables | | Bank Refund of Credit Balance | Irrecoverable Debt | | Interest Charged | Contra, Discount Allowed | | Bal c/f (Cr) | Bal c/f (Dr) | Payables Ledger Control Account: Payables = Liability → Cr Increase → Cr Decrease → Dr | Payables Ledger Control A/c | | --- | --- | | Dr | Cr | | Bal b/f (Dr) | Bal b/f (Cr) | | Bank | Credit Purchase | | Purchase Return | Bank Refund of Debit Balance | | Discount Received | Interest | | Contra | Dishonored Cheque | | Bal c/f (Cr) | Bal c/f (Dr) | Test #1 | Receivable Ledger Control A/c | | --- | --- | | Debit | Credit | | Bal b/f: 5,000 | Bal b/f: 10,000 | | Credit Sales: 25,000 | Credit Collection: 11,000 | | Dishonored Cheque: 500 | Cash Received: 24,000 | | Interest Charge: 1,400 | Irrecoverable Debts: 4,000 | | | Contra: 800 | | Bal c/f (Cr): 2,000 | Bal c/f (Dr): 5,000 | | Total: 30,900 | Total: 30,900 | Contra Receivable: 8,000 Credit Purchase: 10,000 Credit Sales: 10,000 Adjust: 2,000 (pay) | Contra | | Dr: Payable Ledger Control A/c | Cr: Receivable Ledger Control A/c | Control A/c Reconciliation: Mistake in Control Ledger (Receivable / Payable). Adjustments: Decrease in Receivable: Bal c/d (Dr) xxx Increase in Payable: Bal c/d (Cr) xxx Mistake in Individual Ledgers: Bal given in question xxx Adjustments +/- Correct Bal: xxx Illus #1 - Payables Control A/c | Payables Control A/c | | --- | --- | | Dr | Cr | | Discount: 170 | Bal b/f (Cr): 2,000 | | Contra: 2,000 | Purchase (Credit): 8,000 | | Bal c/f: 3,052 | Bal c/d: 2,052 | Test #4 Customers: Tonga Suppliers: Cook $10,000 $14,810 $40 ($14,810) $10,040 $10,730 Balance: $690