CONTROL ACCOUNTS

System

Please can somone help me, i still cant get my head around PLCA and SLCA, i can never rememver what information goes where, if its a DR or CR

Until now i havent been working in accounts so its all been really new to me, i start my new job as an accounts assistant on Monday, so hopefully this may help me a little bit

Cheers

System

Re:CONTROL ACCOUNTS

(Copied and pasted from a previous post of mine)

First off, these forums are here to ask for help so never feel afraid or too proud to ask...

Please also read my explantion of double entry using the following link;

http://www.aat.org.uk/forums/posts/list/13166.page

The principle of double entry is that for every debit entry or amount there will be an equal credit entry or amount elsewhere and vice versa.

The theory of control accounts can be explained as follows;

Imagine you had a separate physical paper book for every customer you sold goods on credit to - there might be dozens or even hundreds of them. These are called the subsidiary or memorandum account books.
Then at the end of the month, say you want to know your total outstanding credit sale balances. To go through each memo book, total all the amounts then add all the figures together would probably take hours. A control account is a "master account book", keeping tally of all the other accumulated amounts in one volume, thus - in theory - reducing the time taken to extract all the figures. It doesn't record all the individual sales and invoice numbers - that's the job of the memo books - just the total accumulative balances of all the other books together in one simple figure.

For example;
Customer A owes £100
Customer B owes £200
Customer C owes £200

The sales ledger control account figure would therefore be £500 - the total sum of accounts A, B and C all added together.

All businesses will have a sales and purchases control account, however larger ones may have additional ones such as stock or VAT control accounts...

Regards,

Robert

System

Re:CONTROL ACCOUNTS

thank you for that, hopefully it will now start to sink in for me

cheers