Sales and Purchases Ledger Control Accounts
Students prepare control accounts to verify the total balances of the sales and purchases ledgers. They will identify sources of information for control accounts and reconcile them with the subsidiary ledgers.
About This Topic
Students prepare control accounts to verify the total balances of the sales and purchases ledgers. They will identify sources of information for control accounts and reconcile them with the subsidiary ledgers.
Key Questions
- How do control accounts act as an independent check on subsidiary ledgers?
- What are the primary sources of data for entries in a sales ledger control account?
- How do you resolve discrepancies between a control account and the list of ledger balances?
Active Learning Ideas
See all activities→Activities & Teaching Strategies
See all activities
More in Verification of Accounting Records
The Trial Balance and its Purpose
Students explore the function of a trial balance in verifying the arithmetical accuracy of double-entry bookkeeping. They will extract balances from ledger accounts to prepare a trial balance.
2 methodologies
Errors Not Affecting the Trial Balance
Students identify and correct the six types of errors that do not affect the trial balance agreement. They will prepare journal entries to rectify errors of omission, commission, principle, compensating, original entry, and reversal.
2 methodologies
The Suspense Account and Correcting Errors
Students investigate errors that cause the trial balance to fail and learn to open a suspense account. They will process journal entries to clear the suspense account and correct the ledger.
2 methodologies
Bank Reconciliation Statements
Students compare the cash book with the bank statement to identify timing differences and errors. They will update the cash book and prepare a bank reconciliation statement to verify the true bank balance.
2 methodologies