Acca financial Accounting (FA) Study Text ac ca (FA)

Chapter 14 

KAPLAN PUBLISHING

243 

A key control operated by a business entity is to compare the total balance on 

the control account at the end of the accounting period with the total of all the 

separate memorandum balances. In theory they should be identical. This is 

referred to as a 

control account reconciliation

. 

Note:

 The memorandum balances are often, confusingly, referred to as 

the 'receivables’ ledger' and the 'payables’ ledger.' Don't get these mixed 

up with the control accounts in the main/general ledger! 

3 Illustrative 

control 

accounts 

The receivables’ ledger control account may include any of the following entries: 

Receivables’ ledger control account 

$

$

Balance b/f 

X 

Balance b/f 

X 

Credit sales (SDB) 

X 

Sales returns (SRDB) 

X 

Bank (CB) dishonoured cheques 

X 

Bank (CB) 

X 

Bank (CB) refunds of credit 

balances 

X 

Irrecoverable debts (journal) 

X 

Interest charged 

X 

Contra with PLCA 

X 

Balance c/f 

X 

Balance c/f 

X 

–––

–––

X

X

–––

–––

Balance b/f 

X 

Balance b/f 

X 

The payables’ ledger control account may include any of the following entries: