Control accounts
by iffah liyana
1. Advantages of Control Account
1.1. serve as an independent check on the sales
2. Sources of information for Control Accounts
2.1. credit sales
2.2. returned cheques
2.3. Interest charged to debtors
2.4. cash or cheques from debtors
2.5. discount allowed
2.6. sales returns
2.7. bad debt written off
2.8. contra entries
3. Debtors Control Account
3.1. Purpose
3.1.1. provide totals of debtors and creditors quickly when a trial balance is being prepared
3.1.2. Identify the ledgers in which errors have been made when there is a difference on the trial balance