1. Control Accounts

Receivables Ledger Control Account (RLCA)

A summary account tracking total customer debts without details of individual accounts.

Payables Ledger Control Account (PLCA)

A summary account tracking total amounts owed to suppliers without individual details.

Reconciliation

The process of ensuring the totals in the control account match the totals in the subsidiary ledger.

Output VAT

VAT collected on sales that is payable to HMRC.

Input VAT

VAT paid on purchases that can be reclaimed from HMRC.

Contra

The offsetting of amounts owed between a customer and a supplier.

Petty Cash Control

Manages small cash transactions and ensures proper record-keeping.

Errors affecting control accounts

Errors that can cause discrepancies in the balances between the control accounts and subsidiary ledgers.

Dishonoured Cheques

Cheques received from customers that could not be processed, necessitating an adjustment in accounts.

VAT on Credit Sales (SDB)

VAT collected from sales recorded in the sales day book; categorized as output VAT.

VAT on Credit Purchases (PDB)

VAT paid on purchases recorded in the purchases day book; categorized as input VAT.

Individual Customer Accounts

Accounts that detail transactions and balances for specific credit customers in the Receivables Ledger.

Trial Balance

A statement summarizing all the balances from the general ledger accounts to ensure accounting accuracy.

Balance Brought Forward

The starting balance of an account at the beginning of an accounting period.

Errors in double entry system

Mistakes that disrupt the balance between debits and credits in accounting entries.