Control A/c

[Lightwarrior]

Hi

Need help

In control a/cs the Stage of maintaing control a/c are

Record in book of prime entry e.g. Sales of $100 in sales day book

Then record in memo a.c ( $100 in Accounts receivable legder)

Then take toal in the sales day book and post to debit of receivable control a/c and credit to SALES A/C ... So which Sales account would be credited ? Would this be the same sales a/c i.e. credit sales? If yes then wont it mean that same transaction is being recorded twice ?

Like first we would do

Dr Accounts rcvable $100
Cr Sales a/c $100

Then for control a/c the total taken from sales day book

Dr Rcv total a/c $100
Cr SALES a/c $100

i.e. Sales a/c is credited twice with $100 .. ??

Thanks

Lightwarrior

[Grace]

Hi,

In case of control accounts entry is made only once.

Firstly, all credit sales are recorded in the sales day book (not in sales account) and also in the individual customers account (this is memorandum account which is not considered while preparing financial statements).

At the end of the period (may be daily, weekly or monthly depending upon volume and practice of teh company) periodic total of the sales day book is credited to the sales account and debited to the receivables control account (this is the only double entry made). Therefore, no question of crediting sales account twice arises.

Please go thorugh the text once again and try to clear your concepts of control account and recording of transactions (See GTG Study Guide C3).

Apologies, i was quite busy with other things and therefore cannot reply immedietely.