Verification of Accounting Records
Control Accounts
Control Accounts questions test your ability to prepare the Sales Ledger Control Account (SLCA) and Purchases Ledger Control Account (PLCA) from given totals, and to reconcile them with the individual ledger balances. A high-mark topic that rewards careful layout.
Know which side every entry goes — credit sales go debit in the SLCA, receipts from customers go credit. Common mistakes: putting returns on the wrong side, and forgetting to include opening and closing balances correctly. Always balance the account neatly.
Key Concepts to Revise
Sales Ledger Control (SLCA)
Summarises all trade receivable transactions. Debit: credit sales, dishonoured cheques. Credit: receipts, returns, discounts allowed.
Purchases Ledger Control (PLCA)
Summarises all trade payable transactions. Credit: credit purchases. Debit: payments, returns, discounts received.
Contra Entry
When the same business appears in both ledgers — debit PLCA, credit SLCA. Often tested in exam questions.
Reconciliation
Control account balance should equal the total of individual ledger account balances. Differences reveal errors or omissions.