Control accounts/memorandum accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
In intermediate and technician level <BR><BR>will I be expected to deal with questions with control accounts<BR><BR>both as double entry and as memorandum accounts?<BR><BR>I am just looking at ETB and the question presumes the former and calls the individual debtor and creditor accounts the memorandum accounts.<BR><BR>I know early on questions dealt with posting to individual accounts where the control accounts were the memorandum accounts if they were mentioned at all.<BR><BR>kaz

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Control accounts/memorandum accounts

    Hi<BR><BR>Memorandum accounts are basically the invidual creditor's or debtor's 'file' where details of transactions and payments are kept. The total balance of the memorandum accounts should be the same as the relevant control account, the control account being the representation of the memorandum accounts in the nominal ledger.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Control accounts/memorandum accounts

    There are two choices according to Frank Wood.<BR><BR>Memorandum control accounts<BR>Double entry postings to individual debtors and creditors accounts<BR><BR> or <BR><BR>for larger systems<BR><BR>Double entry postings to control accounts<BR>Memorandum individual debtors and creditors accounts.<BR><BR> At what level (foundation, intermediate, technician) are control accounts used as the posting accounts for double entry?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Control accounts/memorandum accounts

    I have only really found the control accounts used at intermediate and technician. Where memorandum accounts are used as part of the double entry process is called the integrated ledger which is only covered at Foundation (or it was under the old standards, not sure about now).<BR><BR>Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Control accounts/memorandum accounts

    Thanks all. <BR><BR>I am skipping foundation but need to run through various texts which apparently conflict sometimes. I reckoned control accounts were more advanced but more often ued in real-life. <BR>I didn't want to get confused as to whether I should assume transactions were normally posted to the Control accounts or not.

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