Cash sales

mighty18

When posting to the sales ledger control account or purchase ledger control account do your entries include cash sales and cash purchases? This is as well as, credit sales & credit purchases.

Cheesypeesy

No, the opposite entry for cash sales or purchases will be the bank/cash account. For cash purchases (ignoring VAT):

Dr Purchases
Cr Bank

Cash sales:
Dr Bank
Cr Sales

Only credit sales and purchases interact with their respective control accounts. The control accounts serve as a stopgap between the sale or purchase being made and the money being received or paid.

So for credit sales, the first entry would be:
Dr SLCA
Cr Sales

Then once the payment is received:
Dr Bank
Cr SLCA

xCarlx

Wow, simple as that. Now it makes sense.