Home For AAT student members AQ 2016 Foundation Certificate in accounting Bookkeeping Controls

Cash sales

mighty18mighty18 AAT Student Posts: 16
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.

Comments

  • CheesypeesyCheesypeesy MAAT Posts: 102
    edited July 2018
    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
    Matthew Dearlove MAAT
    Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.
    xCarlx
  • xCarlxxCarlx Registered Posts: 6
    Wow, simple as that. Now it makes sense.
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