Accounting – 3.4 Control accounts | e-Consult

ABC Company uses a perpetual inventory system. During the month of June, the following transactions related to purchases and sales occurred:

• June 1st: Opening stock = £5,000 (Debit)
• June 10th: Credit Purchases = £12,000
• June 20th: Sales = £15,000 (Credit)
• June 25th: A customer returns goods worth £800.
• June 28th: Irrecoverable debts written off = £200
• June 30th: Closing stock = £4,000 (Debit)

Prepare the following: a) A Purchases Ledger Control Account and b) A Sales Ledger Control Account. Include opening and closing balances, credit purchases and sales, receipts and payments, cash discounts, returns, irrecoverable debts, dishonoured cheques, interest on overdue accounts, contra entries, refunds.