Control accounts exam, PLCA and SLCA debits and credits

Hello there i have my control account, journals and banking system exam this week and for some reason everything I've known/followed in regards to debits and credits clearly isn't helping me with these types of questions because i keep getting them wrong and getting confused :/ can anyone shed some light into some help with these :) thank you

For the PLCA I'm working it out as
Balance owing = credit (owning out must be a liability which is credit)
Journal debt to correct error = credit guess i don't know
goods returned = credit (so if i got goods they'd be an asset so returning them would make it credit?) (turns out this is wrong and i don't understand why its a debit)
Purchase from credit suppliers = credit(sales credit?)
Payments made to credit suppliers = debit (purchases debits)



and similar confusion for this one



I thought it was going well until debits and credits came back to haunt me :( please if anyone can help or has a way of remembering i'd appreciate it :)

Comments

  • N4TN4T Posts: 191AAT Student
    For the PLCA I'm working it out as
    Balance owing = credit (owning out must be a liability which is credit) YES
    Journal debt to correct error = credit guess i don't know I would guess CR not sure but I am reading this as increasing amount owing to suppliers
    goods returned = credit (so if i got goods they'd be an asset so returning them would make it credit?) (turns out this is wrong and i don't understand why its a debit) DR you are reducing the amount owing to the suppliers by returning goods, see it as reducing your liability and not increasing your assets because the original entry when making purchase was CR PLCA
    Purchase from credit suppliers = credit(sales credit?)p Yes, sort of. This is from the point of PLCA don't confuse with credit sales. It's a credit purchase
    Payments made to credit suppliers = debit (purchase debits). DR yes, amount owing on payables is reduced, similar to the goods returned
  • N4TN4T Posts: 191AAT Student
    Transactions to increase the amount owing to credit supplier PLCA is CR, to decrease is DR

    Likewise increase amount owed by credit customer SLCA is DR, to decrease is CR
  • N4TN4T Posts: 191AAT Student
    So for the 2nd part (SLCA)

    Bal owing DR
    Money Rec CR
    Disc all CR
    Good sold DR
    Goods returned CR
  • jw919jw919 Posts: 12Registered
    Wow thank you for your detailed reply i do appreciate it, okay thanks this is really helpful! so journal debit to correct an error would be credit?
  • N4TN4T Posts: 191AAT Student
    It is a bit vague, but I would interpret it as the debt - on a credit purchase - needs to be added to the PLCA therefore to increase total is CR.
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