Control accounts

Understand the functions of control accounts for both purchases and sales ledgers. Recognize the books of prime entry that provide information for entries in control accounts. Prepare control accounts for purchases and sales ledgers, incorporating elements such as credit purchases and sales, receipts and payments, cash discounts, returns, irrecoverable debts, dishonoured cheques, interest on overdue accounts, contra entries, refunds, and both opening and closing balances (debit and credit). Note that preparation of control accounts as part of the double entry system and reconciliation of control account balances with the sales and purchases ledger balances is not required.