CONTROL ACCOUNTS

Introduction Control accounts are so called because they control a section of the ledgers. By control we mean that the total on the control accounts should be the same as the totals on the ledger accounts. There are two main Read More …

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The Ledger

The ledger is simply the accounts. The Ledger is classified into 3 main classes. 1. Sales Ledger, which has the accounts of all the debtors. 2. Purchases Ledger, which has the accounts of all the creditors. 3. The General Ledger. Read More …

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The General Journal

It records information from other correspondence (information that is not recorded in the above books of prime entry). It explains the type of entries that will be made in the ledger accounts giving a reason for these entries. The type Read More …

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Cash Books

A cashbook records all the receipts (cash and cheques from customers and debtors or other sources of income) and all the payments (to creditors or suppliers and other expenses) for a particular financial period. The cashbook will also show us Read More …

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Returns Inwards and Returns Outwards.

Returns Inwards: These are goods that have been returned customers due to various reasons e.g. They may be defective/damaged,  Being of the wrong type. Excess goods being delivered. Goods returned may relate to cash sales or credit sales. For Read More …

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Double Entry Aspects

The Accounting equation forms the basis of double entry and therefore it should always be maintained. Any change in assets, liabilities or capital will have a double effect such that assets will always be equal to liabilities plus capital. If Read More …

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