{"id":3469,"date":"2023-10-05T10:29:19","date_gmt":"2023-10-05T10:29:19","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3469"},"modified":"2023-10-05T10:33:07","modified_gmt":"2023-10-05T10:33:07","slug":"week-4-ss2-third-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-4-ss2-third-term-financial-accounting-notes\/","title":{"rendered":"Week 4 – SS2 Third Term Financial Accounting Notes"},"content":{"rendered":"

WEEK FOUR<\/strong>
\n\t\tTOPIC:- CONTROL ACCOUNT
\n\t\t\t<\/strong>i.\u00a0\u00a0\u00a0\u00a0Definition of Control Accounts
\nii.\u00a0\u00a0\u00a0\u00a0Advantages of Control Accounts
\niii.\u00a0\u00a0\u00a0\u00a0Division of control and their format
\nNote<\/strong>
\n\t\tControl accounts is the extraction of trial balance from individual ledger account of a large organization. Generally speaking, large organizations prepare different types of ledger accounts, but error might occur when preparing these ledgers. To locate the error easily individual trial balance need to be opened for each ledger account, anyone that fails to agree indicates that there are errors. Control account is an easy way to locate errors from ledger account. Control account is also called self balancing ledge.
\nADVANTAGES OF CONTROL ACCOUNT
\n<\/strong><\/p>\n

    \n
  1. \n
    It helps in locating errors\n<\/div>\n<\/li>\n
  2. \n
    It saves time\n<\/div>\n<\/li>\n
  3. \n
    It can be used to detect missing figures\n<\/div>\n<\/li>\n
  4. \n
    Fraud becomes difficult when control accounts are prepared\n<\/div>\n<\/li>\n
  5. \n
    It is used to check accuracy of balance of the ledgers\n<\/div>\n<\/li>\n
  6. \n
    The total debtors and creditors can be easily calculated.\n<\/div>\n<\/li>\n<\/ol>\n

    \u00a0Division of control accounts
    \n<\/strong>Basically control accounts is divided into two: Sales Ledger Control Account and Purchases Ledger Control Accounts. <\/p>\n

      \n
    1. \n
      Sales Ledger Control Account: This account recorded all account debtors control account.\n<\/div>\n<\/li>\n
    2. \n
      Purchases Ledger Control Account: This account recorded all account of creditor. It is also called Total Creditors Control account.\n<\/div>\n<\/li>\n<\/ol>\n

      \u00a0EVALUATION
      \n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What is a control account?
      \n2.\u00a0\u00a0\u00a0\u00a0List four advantages of control account.<\/p>\n

      \u00a0Format<\/strong>
      \n\t\t\"\"\/Sales Ledger Control Account
      \n<\/strong>\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N
      \n<\/strong>1990 Jan\u00a0\u00a0\u00a0\u00a0Balance b\/f \u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0 1990 Jan. Cash from customers X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Credits sales \u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 Cheque from customers X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Debit note issued\u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Returns inward \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Interest charged X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bad debts \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Dishonour cheque X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Discount allowed \u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Discount disallowed X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Credit notes issued \u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Carriage outwards X\u00a0\u00a0\u00a0\u00a0 Bills Receivable \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Set offs \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Balance c\/d \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\"\"\/\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \nPurchase Ledger Control Account
      \n<\/strong>\"\"\/\"\"\/\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N
      \n<\/strong> 1990 Jan.\u00a0\u00a0\u00a0\u00a0Cash to supplier \u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01990 Jan. Balance b\/f\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Cheque to suppliers X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Credit purchases X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Returns outwards X\u00a0\u00a0\u00a0\u00a0 Discount received withdrawn received X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Credit notes received X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cash refunds\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Discounts received \u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Set offs\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bills payable \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 X
      \n\"\"\/\"\"\/Balance c\/d\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0 X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X
      \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 XX\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0XX<\/p>\n

      \u00a0Note<\/strong>: The closing balance of sale ledger control account represents debtors which will appear in balance sheet under current assets. While closing balance of purchase ledger control account represents creditors which will appear in balance under current liability.
      \nEvaluation<\/p>\n

        \n
      1. \n
        Define the term control account and mention two divisions of control account.\n<\/div>\n<\/li>\n
      2. \n
        Mention five advantages of control account.\n<\/div>\n<\/li>\n<\/ol>\n

        Reading Assignment
        \n<\/strong>Essential Financial Accounting by O.A. Longe 187-189
        \nGENERAL EVALUATION QUESTIONS
        \n<\/strong>1 List seven types of errors a trial balance will not reveal
        \n2 Explain the term apportionment in departmental accounts
        \n3 List six uses of control account
        \n4 Explain the components of prime cost
        \n5 List five items found in the total creditors control account
        \nWEEKEND ASSIGNMENT
        \n<\/strong><\/p>\n

          \n
        1. \n
          Another name for control account is (a) sale ledger (b) purchase ledger (c) self balancing ledger (d) general ledger.\n<\/div>\n

          Used the information and options provided, Under it to answer question
          \n2-5\n<\/li>\n

        2. \n
          Credit Sales\n<\/div>\n<\/li>\n
        3. \n
          Discount received\n<\/div>\n<\/li>\n
        4. \n
          Return Outward\n<\/div>\n<\/li>\n
        5. \n
          Credit Purchase\n<\/div>\n

          The above items are recorded under\n<\/li>\n<\/ol>\n

          (a)\u00a0\u00a0\u00a0\u00a0Purchase ledger control account
          \n(b)\u00a0\u00a0\u00a0\u00a0General ledger control account
          \n(c)\u00a0\u00a0\u00a0\u00a0Proper Journal Control account
          \n(d) \u00a0\u00a0\u00a0\u00a0Sales Ledger Control account
          \nSECTION B
          \n<\/strong>Draw up the typical format of
          \n(1) Total debtors control account
          \n(2) Total creditors control account <\/p>\n","protected":false},"excerpt":{"rendered":"

          WEEK FOUR TOPIC:- CONTROL ACCOUNT i.\u00a0\u00a0\u00a0\u00a0Definition of Control Accounts ii.\u00a0\u00a0\u00a0\u00a0Advantages of Control Accounts iii.\u00a0\u00a0\u00a0\u00a0Division of…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,274],"tags":[],"class_list":["post-3469","post","type-post","status-publish","format-standard","hentry","category-posts","category-third-term-ss2-financial-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=3469"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3469\/revisions"}],"predecessor-version":[{"id":3470,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3469\/revisions\/3470"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}