Calculating Values using Control Accounts

Calculating values using control accounts

Calculating values using control accounts

How can I use a ledger account to find a missing value?

• If you are missing just one value from an account then you can find it

• STEP 1
  Draw up the ledger account

• STEP 2
  Fill in the known values

• STEP 3
  Find the balancing figure for the account

  • This is the missing value

What information can I find using a sales ledger control account?

• You can use a sales ledger control account to find the following information:

  • The trade receivables balance at the start of the financial year

  • The trade receivables balance at the end of the financial year

  • Credit sales

  • Credit sales returns

  • Receipts from trade receivables during the year

  • Discount allowed to trade receivables

  • Irrecoverable debts written off

What information can I find using a purchases ledger control account?

• You can use a purchases ledger control account to find the following information:

  • The trade payables balance at the start of the financial year

  • The trade payables balance at the end of the financial year

  • Credit purchases

  • Credit purchases returns

  • Payments to trade payables during the year

  • Discount received from trade payables

What information can I find using a cash book?

• You can use a cash book to find the following information:

  • Amounts paid by the business

    • Cash purchases

    • Expenses

    • Payments to trade payables

    • Drawings

  • Amounts received by the business

    • Cash sales

    • Income

    • Receipts from trade receivables

    • Capital introduced