completely new to this so hopefully I have posted in the right place.
so I started college 2 weeks ago to study bookkeeping and accounts level 2!, second week we did control accounts and it has just really confused me and I am finding it hard to understand it, the difference between a sales ledger account and a purchase ledger account and what goes in dr and what goes in cr!, anyway we have been given some home work of an inexperienced bookkeeper and the following ledger accounts in her books, she has made mistakes and it is up to us to put them right!, I have jotted in what I think could be right but I am so unsure, could someone please explain these control accounts to me and if I am on the right track with it, also on the third account she has put in cash on the cr, what exactly is cash and is that in the right place as I thought we ignored cash sales! I did really well on the first week doing double entry and trail balance but second week I can't seem to get to grips with the control account! any help will be very much appreciate! the class is really busy and the tutor picks your name out to tell everyone what you have got down which is pressure as I feel really embarrassed if I get the answers wrong! I have taken a picture of my home work for more of an understanding!
-- Edited by Jademg on Monday 23rd of October 2017 11:48:25 AM
Hi, sorry! Sorted that now, I have tried re loading the picture but for some reason it is still coming up side ways!
I am studying city and guilds level 2 award in bookkeeping and accounts!. My tutor has said we shouldn't need text books as we can revise from the handouts, however I must admit for someone like me I think a text book would help, so I have been looking around for which ones would be best.
Thank you!
Hi Jade Your tutor is a control freak clearly! I guess the reason they do that is so that you dont skip ahead too far, but really we are all grown ups so its just ridiculous.
Have to say I also found the handout very badly written. Just my opinion and whilst Ive cleared up the complete messes left by inexperience bookkeepers, I think the set up for the question wouldve been better as a business owner made a mess in their books as thats generally more likely!!!! Also using the phrase 'personal ledger accounts'. But hey - thats just an aside.
Anyway - have a dig around the site and do a search for books. In fact - go onto the main summary pages and there are some posts near the top of each section called 'stickies'. One or more of these will have a list of good books which our moderator Shaun has created. You can get some of these from the library so they wont cost anything, but there are also some you can get for pennies on Amazon.
Ive also added a link that explains control accounts. If you still dont get it after reading this then re-post, but also ask your teacher to give you another explanation (or some more detailed handouts!)
Before you get on to the control account though, best way to work through it is to do a list of all the transactions in the top half of the question and do a full breakdown of all the debit and credit entries required, THEN set up a pile of T accounts and work through the entries, THEN lastly fill in the individual sales ledger (or personal sales ledgers acounts as they call it). Your debits and credits will make more sense and you will get more practice (which is what is needed as the double entry is the backbone of it al!)
One hint - the cash referred to is not cash sales! Think of how a customer can pay!
If you do the above, debits and credits and T accounts - feel free to post and someone can have a look.
Edited to correct a typo and to re-attach the full link as the other didnt work properly!!!!!!
-- Edited by Cheshire on Monday 23rd of October 2017 12:59:25 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
And as if by magic I answer your post before reading it (queue Twilight zone music).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
