Debtors control a/c and general journal - business

ektec

Lads, I'm having trouble with two main short questions on the business paper section A.. they are:

1) Debtors control account - I'm finding these hard, not sure where each figure goes. Can anyone help me with some simple tips for me to understand where each figure goes? Example you can use is 2011 section A question 9.

2) General journal - again, I'm struggling with these. Not sure where to place the figures whether on the credit or debit side. Anyone simple tips to remember where they go? Example you can use is 2011 section A question 12.

Please show me how to do them, and if any simple tips to remember where they go...It would be greatly appreciated

Slow Show

ektec wrote: »

Lads, I'm having trouble with two main short questions on the business paper section A.. they are:

1) Debtors control account - I'm finding these hard, not sure where each figure goes. Can anyone help me with some simple tips for me to understand where each figure goes? Example you can use is 2011 section A question 9.

2) General journal - again, I'm struggling with these. Not sure where to place the figures whether on the credit or debit side. Anyone simple tips to remember where they go? Example you can use is 2011 section A question 12.

Please show me how to do them, and if any simple tips to remember where they go...It would be greatly appreciated

For control accounts I remembered them as being the opposite to what you'd expect them to be if you were doing your own account. Like OK, looking at 2011 'credit sales for May'. Sales usually go on the credit side, but put them on the debit side here. Remember this is because the account is done from the debtor's perspective. You've sold goods on credit to them, therefore they are receiving - you debit the account. Cash received from debtors would normally go on the debit side, but it goes on the credit side in this instance. This is because the debtors are giving money from their account, reducing their balance.
I think the original balance goes on the debit side but I'm not 100% sure. I do LC Accounting and the over-simplification of it for JC is confusing me a little bit.


As for the general journal. OK, remember this: Debit the account that receives, credit the account that gives. Also this: all assets and expenses have a debit balance, all liabilities and gains have credit balances.
2011 q12:
The bank has already been debited 25,000 - this is because you have 25,000 on your bank account - this is how much the bank receives.
You would enter the 600,000 for premises on the debit side. They are an asset to you-when you bought them, they were entered into your premises account on the debit side as it was the account that received.
Creditors are a liability, you owe them money. Therefore they are entered into the credit side (hint's in the name). Also, in terms of the first rule,you bought goods on credit from creditors, they gave you the goods...your purchases account received, the creditors account gave in.
Ordinary share capital is added onto whichever side of the account it is needed to balance (total up the bigger side, subtract total of smaller side and that's your Ordinary Share Capital). It will be entered into the credit side in this instance. I'm not really sure why, just something I was taught...

I hope this somewhat helped.

Pen Rua

For the Control Accounts I find this easy to use. (I prefer continuous presentation, so I will explain it that way.)

For the Debtor's Control Account, the Dr. Column increases the amount. (Debtor; Dr. side). So as an example, Credit Sales would go in the Dr. Column as they increase the amount.

For the Creditor's Control Account, the Cr. Column increases the amount. (Creditor; Cr. side.)

It might be handy to mark in a little + and a little - for yourself above the Cr. and Dr. columns.

So, for example, in a Debtor's Control Account, you can mark in a + above the Dr. Column; a - on the Cr. Column.

Hopefully that makes sense to you. c:

Slow Show

Ah yes, of course, we use that technique in LC Accounting (small bit more complicated, mind ), much handier than my long-winded explanation! And then the balance would be in the DR side as it increases the amount, grand!