This is an aspect of account prepared purposely to determine a gross profit or gross loss made in a given period of time. It gives account of the finished goods of any business activity and likewise the stocks of the business, the purchases made in a given period, the carriages both inwards and outwards and …
In any business organization, it is deemed that their records are complete and because of their completeness in accounting, one can have it in mind that the organization is keeping a double records system. But whereby this is not kept, then we can say that the organization is keeping a single entry system or in …
The rule of double entry stipulates that in every debits entry, there must be a corresponding credit entry and vice versa. This rule also applies in the control ledger account where we control account, whether it is a debtor’s ledger control account or a credit ledger control account. This reason is so because its double …
In the characteristics of the purchases ledger control account mentioned below, we have seen the entries that are supposed to be both in the debit side and the credit side. On the Debit Table Side On the Credit Table Side opening debit balance opening credit balance cash paid to creditors during period purchases during period(supplies) …
Whenever goods are bought on credit, the usual practice is to prepare purchases day book. But whenever purchases are made through cash, the entries are made between purchases accounts and the cash accounts. In a large business organization, which may have large number of supplies, these kinds of transactions will contain a number of entries, …
For opening debit balance, (Bal bld), this would be brought down as from the previous time period. For sales, the total amount of sales for any particular period of time will be obtained from the sales day. Then whenever sales are made on credit, the customer who received the products (goods) is debited. For dishonoured …