POBC Flashcards
(12 cards)
Describe Subsidiary Ledgers
Payables & Receivables Ledger. They sit outside the General Ledger
What is the RLCA
Receivables Ledger Control Account, aka Sales Ledger Control Account SLCA: contains the summary information of the Receivables Ledger
What is the PLCA
Payables Ledger Control Account aka Purchase Ledger Control Account: contains the summary information of the Payables Ledger
What is a Control Account?
An account which holds summarised information and can therefore be used as a check.
What is the purpose of the RLCA?
To summarise the transactions from the receivables Ledger in the Nominal (General) Ledger
How are entries from the Sales Day Book posted the RLCA?
DR RLCA
CR Sales
CR VAT
Sales Return Day Book into RLCA
DR Sales Returns
DR VAT
CR RLCA
Cash Book to RLCA
DR Bank/Cash
CR RLCA
Discount Allowed Day Book to RLCA
DR Discount Allowed
DR VAT
CR RLCA
What is the purpose of the PLCA?
To summarise the transactions from the Payables Ledger in the Nominal/General Ledger
Key Term: Control account. Describe its purpose
Act as an aid to ensure information in the accounts is as accurate as possible
Key Term: Subsidiary Ledgers. Name them and where do they ‘sit’
They are the Payables ledger and the Receivables ledger. They live outside of the General ledger
