For AAT student members
Foundation Certificate in accounting
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.
edited July 2018
No, the opposite entry for cash sales or purchases will be the bank/cash account. For cash purchases (ignoring VAT):
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:
Then once the payment is received:
Matthew Dearlove MAAT
Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.
Wow, simple as that. Now it makes sense.