View ACCA F3 / FIA FFA lectures Download F3 notes
ACCA F3 Control Accounts (part b) Example 1
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>
Dear John, I dont understand that when you debit receivables and credit cash when we have to refund to the customer. As you explained, I got it and I think it’s right in the scenario that the customer overpay us. However, in the case the customer return the goods and get money back. I think we need to debit sales and credit cash, so it’s not debit receivables all the time when we refund to customers, am I right?
No.
If a customer returns goods, then you debit sales and credit receivables.
It then means they have overpaid and have a credit balance on receivables. Then either this will reduce what they owe us for future purchases, or we will give them a refund. If we give them a refund then debit receivables and credit cash.
Sir what is the credit balance in recievable control a/c
Amounts owing back to customers.
Where is F3 Questions answer
Bank
Have you looked at the contents page of the lecture notes?!!!
At 24:24 of the video you mention “turn to question 1” where can i find this question?
You can’t and I must delete that from the lecture.
There used to be a few test questions at the end of each chapter in the lecture notes.
However they have been removed and instead we have online practice tests that you can find linked from the main Paper F3 page. (They contain the full workings with the answers and so don’t need lectures on them)
Hi, Quick question. What is the entry when payment is made for expenses after the Cash have been received from the customer?
If expenses are paid out of cash then we credit cash and debit the expense account.
Sir
could you please explain why is cash refund to credit customers a debit in receivables control account?
If it is a refund, shouldn’t we be crediting it from the credit sales?
A refund is a repayment of cash (maybe, for example, the customer paid us too much by mistake, and therefore we repay them).
When they pay us we debit cash and credit receivables. If we give them some of the cash back then we credit cash and debit receivables. It does not affect sales at all.
Hi Sir
In the receivable account, dishonoured cheques from credit customer is a debit entry?
Thank you!
Yes – that is correct 馃檪
Dear sir,
Thank you for lectures. While preparing and fixing errors for receivable/payable control account, am i right if i assume that only double entry ledger accounts affect control account and not the journal books like payable journal or receivable journal?
hello sir,
In the test question 1, pg 110
why have you not considered allowance for receivables ?
allowance reduced the amount to cash we’re going to receive. So why is that an error?
An allowance does not reduce the cash we will receive. The cash is only reduced if a debt becomes irrecoverable (and I say this during the lecture).
I do suggest that you watch the free lectures on irrecoverable and doubtful debts.
Sir,
I couldn’t able to find these question in the notes where are the examples?
Try looking at example 1 in the chapter on control accounts.
Sir! Chapter 16 Test papers QNo:4 reads as follows Opening balance of the payable ledger is $438900. There was a contra entry $980. The total of Purchase return journal was undercast by $1000 and an invoice of $4344 was posted as $4434. What is the amount to be reported as accounts payable.
The answer is said to be $437830 (D). but i disagree with it since there are purchase returns that has not been accounted for. I feel the answer is A ($4368300 That is Credit $438900 and debit $ 980 contra, Debit purchase return $1000 and debit the amount to correct the invoice $90 and the difference $436830. Kindly help.
The answer in the lecture notes is correct.
The payables ledger is where each individual balance is recorded. Each item from the purchase returns journal will be entered separately in the individual accounts in the payables ledger.
The total is entered in the nominal/general ledger and so that is wrong and the payables ledger control account balance will be wrong.
However the total does not affect the payables ledger itself at all.
So the undercasting of purchase returns is to be corrected only in payables ledger control account?
That is correct 馃檪
Thank you sir 馃檪
which one is the right answer??
436830
437830
The answer given in the text is correct, so I do not know why you ask!
437830
Because it is always to cancel a receivable (so credit receivables) against a payable (so debit payables) because we are owed money and we owe money to the same person.
Oh! I got that. Thank you so much!
Hi John,
Can you please explain how is it that we always credit receivables and debit payables account in case of contra entries?
He explained it in the first video @purnima. It’s more towards the end of the video if you want to fast forward.