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Can anyone explain this?

sarahwilsonsarahwilson Experienced MentorRegistered Posts: 567
Its more for my own knowledge than anything else really plus I don't even understand the question!! I'm looking at old sims and stuff and doing the questions rather than the ledger stuff and have come across one I don't really understand.

It says what type of transactions would the basis of the entries in a control account for non trade debtors comprise? I think the answer is journals but to be honest I'm not sure what the question means, is it even grammatically correct or am I just thick?

Comments

  • ToffeemadblueToffeemadblue Well-Known Registered Posts: 102
    Non trade debtors

    Hi Sarah,
    Doesn't make any sense to me either but i did find this definition

    Debtors other than trade debtors, prepayments, trade payments in advance, infrastructure renewals prepayment or other balances included in working capital.

    So you could be right about the answer being journals!
  • EsmeEsme Experienced Mentor Registered Posts: 711
    Is it trying to get you to put about non trade debtors, so could be things like rental of a building you own or something like that???
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    am i miles off but isnt that a contra - where a sale has been matched by a purchses??

    so money isnt given but an outstanding bill writen off? or did i read that wrong?
  • sarahwilsonsarahwilson Experienced Mentor Registered Posts: 567
    I have no idea what the question even means. It seems to be gobbledygook to me and everyone I ask it to!!
  • welshwizardwelshwizard Trusted Regular South WalesRegistered Posts: 465
    How about credit transactions made that are not a result of trading, e.g rent receiveable (rent owed by a tenant), interest receivable (interest owed ot you by someone/a business that has borrowed money from you), tehse transactions would be taking place 'behind the scenes' outside of the normal trade operation of the business. Does that help?

    Have a look at this taken from June 2005 PLB exam:

    Task 2.7
    Marian Walker has decided to rent out surplus offices to a number of businesses and has
    asked you to open the relevant customer accounts in a separate subsidiary ledger. Marian
    does not wish the amounts due to be recorded in the existing sales ledger control account.
    Name the TWO accounts that you will need to open in the main (general) ledger.

    Answer: 1 Non-trade debtors control account to record where the debts from the various tenants are being stored (Non trade Debtors Ledger) and
    2 Rent receivable account (an account to record the income from the Rent - the same as the Sales account)


    I hope this helps you.
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