Trade debtors control account

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Tanya669
Tanya669 Registered Posts: 5 New contributor 🐸
in General discussion
If any one could axplain to me in what circumstances would a non trade debtors control account be used?

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  • Paul24
    Paul24 Registered Posts: 578 Epic contributor 🐘
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    VAT Control Account
    Wages Control Account

    Regards
  • columbia
    columbia Registered Posts: 580 Epic contributor 🐘
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    Hi

    A rent account would be a good example, I vaguely remember being asked this on my Foundation paper a few years ago.

    You may have spare premises to rent out, so a non-trade debtors account would be set up to show the rental transactions. It wouldn't be a trade debtors account as it's most likely the monies being paid in rental have no bearing on the products being sold by the company.

    Hope this helps!

    Tracy

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