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March 10, 2021 at 7:41 am
very important lecture, this topic always confuses me!!
thanks for the great material,
John Moffat says
March 10, 2021 at 8:23 am
Thank you for your comment 🙂
November 13, 2020 at 3:40 pm
Important lecture. Thankyou !
August 4, 2020 at 10:09 am
Sir, is sales ledger control account and receivable control account the same thing? If not, then in example 1 it is a cash sale $92700, then Debit cash 92700 Credit Sales 92700, should we also enter in on the receivable control a/c?
Because you said only if it is a cash received from credit customer we enter it by Debit cash Credit receivables. But it seems to me that no matter which way it is, it always will be entered into the sales/receivable control account based on the assumption that these two are the same things? Super confused?
August 4, 2020 at 3:40 pm
The sales ledger control and the receivables ledger control are different names for the same thing.
However it is not the same as the sales account.
If we make a cash sale, we debit cash (because we have received cash) and credit sales (because we have made sales).
If we make a sale on credit, we debit receivables (because we are owed money) and credit sales (because we have made sales).
Have you watched all the earlier lectures, because I explain these entries in my lectures on Chapter 3 of our free lecture notes.
February 20, 2020 at 10:27 pm
Sorry i did not understand part of refund to customers. If we refund money to somebody we give it back why debit receivable
February 21, 2020 at 6:32 am
When we receive money from a customer then we debit cash and credit receivables.
If we then give them the money back (maybe because they paid us too much) then we credit cash and debit receivables.
April 21, 2020 at 6:42 pm
Thanks for the lecture.But my doubt still stays regarding the receivables, if we debit receivables than it will increase the amount of receivables.But that’s not the case right.
April 21, 2020 at 8:00 pm
Please correct me if I am wrong,instead it should be debited to the sales return account and credit to cash/sales depending if it was a cash sale it credit sale.
April 22, 2020 at 10:05 am
Refunds are not returns!
Suppose I sell you goods for $100. I will debit receivables with $100.
Suppose by mistake you pay me $200 instead of the $100 you owe me. I debit cash and credit receivables with $200.
I then have a credit balance of $100 – I owe $100 back to you.
So I refund (repay) the extra cash you paid. I credit cash and debit receivables. The balance on receivables is then zero which is correct.
December 18, 2019 at 11:40 am
what of allowance for receivables to they affect the receivable ledger control account?
December 18, 2019 at 3:03 pm
No – it does not affect the receivables account at all.
I do explain all about this in my lectures on Irrecoverable and Doubtful Debts.
November 11, 2020 at 3:07 pm
Allowance for Receivable would not be entered into the Receivables control ac because it is the total that would be posted into the SOFP as current asset and Allowance for Receivable is a year end adjustment which would be recorded separately on the SOFP. Sir please correct me if im wrong.
I also have a question.. why aren’t discount allowed recorded in the Receivable Control A/C? Is it recorded in the cash receipt book?
October 7, 2018 at 10:31 pm
hi Sir just one question in Receivable Ledger Control A/C you have put the value of Cash received $92,700 instead of $91,270 and there is no entry for Discount Allowed of $1,430 may i kindly know how?
as far as i am getting it that you put one value of $92,700 for both the entries combined as it is the sum of it .. so can we do it like that too.
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