I am currently studying towards my IAB Level 1 and 2 exams in June and have a question on Control Accounts!
Just when I thought I had finally got my head around which side of an account a transaction is recorded, they go and throw a spanner in the works!
According to my manual "A control account is a total account showing in summary form the detailed entries made in the ledger. The summarised total entries in the control accounts will be on the same side as the individual entries in the sales and purchases ledgers, the control accounts merely taking the place of all the individual accouns in the general ledger".
However, when they set out an example, they show a Sales Ledger Control Account in the General Ledger with Cash Book entered on the Credit Side! I am confused as I thought that when a payment was received, it went on the debit side (i.e. sales out (credit) payment in (debit)! If anyone can give me a helpful explanation it really would be appreciated as I can find no useful books and nothing of much help in the internet.
I studied ICB (think similar level as IAB) and for the level 2 exam I went on a revision course where they advised that Business Accounts by David Cox
ISBN's
ISBN-10: 1872962637 ISBN-13: 978-1872962634
This book is really good, it was too late for me for the level 2 exam as the revision course was very near the exam but would have to say it is making life a lot easier for studying for my level 3 (the course study lessons sent through the open learning college I enrolled with there are some things in it that I just cannot grasp what it is about, but reading the relevant section in the Business Accounts book alongside course study I actually understand much better.
