Ask Experts Questions for FREE Help !
Ask
    SJR's Avatar
    SJR Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 28, 2009, 04:10 AM
    Sales & Puchase Ledger control accounts
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounts in General Ledger [ 1 Answers ]

Mickey Company has the following accounts in its general ledger at July 31: Accounts Receivable, $40,000; and Allowance for Doubtful Accounts $2,500. During August, the following transactions occurred: Aug. 15 Sold $20,000 of accounts receivable to Good Factors, Inc. Who assesses a 3% finance...

How can I prepare ledger accounts [ 1 Answers ]

How can I prepare ledger accounts:mad:

Journal entries and ledger accounts [ 4 Answers ]

Hi I have a homework due and I don't understand this at all, can someone help me! (Urgent) Record the following journal entries and create Ledger accounts for Cash, A/R, prepaid rent, office supplies expense, utilities expense, notes payable, Hidden Glen capital account and drawing account....

View more questions Search