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Control Accounts (part c) – ACCA Financial Accounting (FA) lectures

VIVA

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  3. Hi John,

    Can you please explain the accounting treatment of (Interest charged to customers) while preparing receivable and payable ledger’s control account?

    Thank you for the great lectures as well..!!

  4. Thank you sir for the lecture though I am a bit confused and here goes my question;
    Given that naturally what constitute total receivables from the individual customers accounts are their debit balance at the end of the period and we added a credit balance of 800 to our list of debit balances which naturally we ought to ignore when determining the total receivables at the end of the period from the individual customers accounts, shouldn’t the correction be to just subtract the 800 we added in our list of debit balances?

    • Not when reconciling with the control account. The control account shows the net receivables and the net receivables are the total debits less any credits. The fact that in the SOFP any credit balances should be shown as being liabilities is a separate issue.

  5. I just want to say thank you for your support. I mostly will watch your lectures first before my Bpp text book. Even though it seems wast of time, I do not mind because your lecture helps me pin point some focus areas when I approach the text book. I will definitely donate when I find my ground financially. You are a star John.

  8. Even the Kaplan published FA text book, although a great source of understanding much of the ACCA subjects, fails to benefit me in this particular topic without the presence of your amazingly simplified lecture. You made something difficult seem easy by explaining the basic differences first between the Control Account and the Memorandum/Individual accounts via good diagrams, and thats what the FA Kaplan Text Book 2020-2021 edition didn鈥檛 do.

  10. Hello Sir,

    Thanks a lot for the knowledge. I read BPP but always when i get back to your lectures, i clearly understand the concepts. I like your speed and attention to details that you always go slowly for every one to understand and the hints given for where exams are set.

    Thanks Thanks a lot.

    God Bless you. And much appreciation to Open Tuition for the Platform.

    Much love from Uganda.

    • The amount owed by Alex was omitted from the Receivable Ledger accounts not the Receivable control account because the figures in the control account were taken directly from the Sales Day Book. There is no Account for individual customers in the sales day book.

      The $1600 was entered in the credit side because an error was made where the $800 was debited in the receivables ledger and so to correct the error you have to first credit the account by the $800 to nullify the incorrect entry then you have to credit the account by another $800 which is the correct entry hence you credit the account with a total of $1600.

  14. Hi John

    Example 2, section d – A credit balance of $800 in the receivables ledger has been listed as though it was a debit balance.

    As this was incorrectly updated in the receivables ledger, shouldnt the receivables control account be debited by $1600, the is would balance the totals on both and make it $26600.

    Instead you have deducted this from the list of balances in your lectures. If the receivables ledger was updated incorrectly wouldnt this effect the control account and the list of balances?

  15. HI John, in Ex 2 the Contra with Payables, shouldn’t that be for the Payable Ledger Control Account ? Why did we enter it in the Receivable Ledger Control Account ?

    Thanks !

  16. Hi john,
    in control account reconciliation example 2:
    a) 1200 owing from Alex had been omitted from list balances

    here you added in 1200 in list of balances but you did not add that amount in control account ,,we post total of list of balance to control account right ?? so control account will be less 1200 ,,,please explain …

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