Coming back to Control Account. Do you know what is Receivable Control Account?
Watch Dr Accounting chapter 14 to learn more about the world of Accounting with us!
Welcome to Doctor Accounting chapter fourteen. In this series, I would like to share with you about Receivable control account.
So I would like to demonstrate with this T-form, as you can see from your screen. So on the Debit side, you could see the Balance brought-down is the Balance from the previous month and the Sales, remember that it should be a Credit Sales. It will appear on the debit side.
Okay now, let’s us move on to the Credit side. The credit side, when you see the cash, is the payment for the Credit sales. And if any returns that is being made by the customer, it will be Return Inwards.
Okay now, what is a Contra Account?
So a Contra Account is a situation when the customer is also your supplier. The double entry will be you debit the payable control account and you credit the receivable control account.
So I will share with you more in my next series the Payable Control Account. So stay tuned, thank you.