Control accounts notes

Control accounts are used by accountants like suspense accounts,

as a double check mechanism. They ensure that they have handled
the double entries involved in credit transactions properly. This
means simply that all credit transactions have resulted in a debit
and a credit entry.
How it works is:
(1)each credit transaction affects a Personal account (eg Mrs Smith
a/c, Mr Brown a/c) stored in the Personal Ledger also called
Sales/Debtors Ledger for credit sales or the Purchases/Creditors
Ledger for credit purchases. We balance all the accounts in these
ledgers and add up the total from the list of balances. This figure
tells us what we owe or are owed.
(2)at the same time, we add up the totals of the Other accounts
affected by these transactions in the Books of First Entry, eg in the
case of Debtors credit sales, cash receipts, sales returns, bad
debts, etc. These figures are put into a Totals Account called a
Control account and then this account is balanced and this figure
tells us what we are owed.
The two totals should agree but for the Leaving Cert, the do not. You
are given a list of errors and asked to correct the control or list or
both.
The Technique involved
Before starting to read the question, layout the 2 blank solution
documents, eg here Debtors Control and a List of Debtors. and input
the balances given.
Debtors Control Account
Bal bd
100 Bal bd
10
0

List of Debtors
Original List Total

???
?

Add
Less
Corrected Total
NB. There is a debit and credit balance. Odd? I thought Debtors
should only have Debit balances? The credit balance represents a
Debtor to whom we owe a refund, so we owe him, he doesnt owe
us. If the question says nothing about us paying the refund, then
that balance will still be in place at the end of the question like this:

Debtors Control Account

Bal bd
100 Bal bd
10
0

List of Debtors
Original List Total

???
?

Add
Less
Bal cd

10
Bal bd

10

Corrected Total

Like suspense, you must know what should have been done to be
able to correct the mistake. The questions you must ask your self
are:
1. Does the error affect the Personal Account, the Control
account, or both? If you are not sure ask yourself if this
means that the Mrs Smith a/c is wrong or the other a/c (eg
Sales, Sales, Returns, Cash, etc)
2. To fix the error in either the Control or the Personal a/c do I
need to increase or decrease. To increase the List, you Add
(simple eh!!!), and to increase or decrease the Control, use
the BookKeeping Key from Suspense.
Examples:
Sales Daybook over totted (added up too much) by 120
A Debtors receipt was entered as 800 not 80 in the
Personal account
Goods returned 75 were entered in the Sales Day Book
as 85 and as 7 on the Debit in the Personal a/s
Try these, solutions below DONT CHEAT !!!!!!!!

Debtors Control Account

Bal bd
100 Bal bd
10
0
Sales
120
Sales
85
DB
Sales
75
Ret

List of Debtors
Original List Total
Add
Cash Receipt
Less
Sales Returns

Bal cd
Bal bd

10 Bal cd
101
0
720 Bal bd

720
101
0
10

Corrected Total

72
72
0
79
2
(82
)
71
0