Custom Search

(55)-THE OPERATION OF CONTROL ACCOUNTS

Friday, December 18, 2009

The Operation of Control Accounts
  • The two most important control accounts are those for debtors and creditors control accounts. They are part of the double entry system.
  • Cash books and day books are totally periodically and the appropriate totals are posted to the control accounts.
  • The individual entries in cash and day books will have been entered one by one in the appropriate personal accounts contained in the sales ledger and purchase ledger. These personal accounts are not part of the double entry system, they are memorandum only.
  • At suitable intervals the balances on personal accounts are extracted from the ledgers, listed and totaled. The total of the outstanding balances can then be reconciled to the balance on the appropriate control account and any errors located and corrected.

0 comments:

Post a Comment

About Me

My Photo
Management Consultant.
Financial management and business management specialist.
View my complete profile

WELCOME

WELCOME ALL.....................................................,

If you have any problems regarding accounting please comment in this site and let we know SURELLY WE ANSWERED...................................,