Control accounts | Accounting

The purpose of the control account is to keep the general ledger nice and clean without any details, yet contain the correct balances to be used in the financial statements. 

Test 1

Question:

The following information related to Mr. William for the year ended 30 September 2005:-

$

Interest charged to debtors

326

Carriage charged to debtors

3,290

Cash purchases

12,735

Returns inwards

1,938

Bad debts written off

853

Cheque payments to suppliers

64,320

Discount received

1,717

Allowance to debtor for damaged goods

500

Cash sales

76,321

Debtor’s cheques dishonoured

2,639

Purchases Returns

1,222

Credit sales

132,845

Discount allowed

3,699

Transfer of debit balance in Sales Ledger to Purchases Ledger

2,850

Credit purchases

70,394

Cheques received from…