PDA

View Full Version : Sales & Puchase Ledger control accounts


SJR
Oct 28, 2009, 04:10 AM
A cash refund to a debtor has been enterd on the Dr side of the sales ledger control account. The sales ledger debit balance is £6007 bu the sales ledger control account debit balance is £5896 a difference of £111. This is the same as the cash refund to the debtor Mr Green, it has bee suggested that the cash refund has not been entered in Mr Green's account in the sales ledger. How should this cash refund been entered in the in the double entry system of accounts.

How cash overpaid and returned also be entered in the double entry system it has been entered in the Purchase ledger control account.

Thnak you for your help

morgaine300
Oct 28, 2009, 10:40 PM
I'm still trying to figure out why you have two different sales accounts... I can't figure out how you're making a subsidiary out of sales. The debtors accounts would be the subsidiary. But if that is what you're doing, it means it has to be posted twice, one to the controlling account and once to the subsidiary.

And I wouldn't think a purchase return would be on the purchases journal. Since there are no rules about what has to be on these journals, I don't know what's on it. If you got a cash refund I would think it would go on a cash receipts journal.