Control Account recs

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi everyone,

I really need some help understanding the control account reconciliations as I am totally confused here. If you are told to balance off your accounts and extract a preliminary trial balance, do any journal corrections you make not show up in the accounts you have balanced off already? Help someone please - I am lost on this one!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Control Account recs

    The order you are presumed to do things in is presumed to be the following by the AAT:

    1. Balance off accounts.
    2. Create a trial balance
    3. Make journal adjustments.

    In answer to your question of course journals do affect the balance of the accounts, but in the "AAT exam world" you calculate the balance on the account before you make the journals. The balance has changed after the journal - you just havent specifically recalulated what it is until you balance them off again. Remember this is a manual system we are considering so theres no handy total on the screen being updated after each posting.

    Hope I am getting my point across.

    IMHO
    Adrian

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