Creditor's Ledger

 

  1. On 31 August we owe Jim Suppliers R4000

  2. On 1 September we bought R6000 worth of goods. 

  3. On 5 September we paid R9300 by cheque 001 in settlement of the account. A discount of R700 was given. 

Creditors ledger for Jim Suppliers - September 2019

Screenshot 2020-10-02 at 14.27.55.png

Final Balance put into the debtors list- a compilation of all the debtors balances at the end of the month.

Debtors List 

Screenshot 2020-10-02 at 14.26.22.png

The Balance from the creditors ledger also gets carried to the creditors list and the total from the creditors list must correspond with the creditors control account in the general ledger. 

The importance of having the creditors control account equal the the creditors list total and the debtors control account equal the debtors list total revolves around internal control. They the creditors and debtors ledger records all movements of cash relating to debtors and creditors, and should therefore correspond with the debtors and creditors control accounts - if they do not correspond it shows that there h as been an error or omission. 

References

  • Anon., 2007. The Answer series: Grade 11 Accounting. 2007 ed. Cape Town: The Answer.

  • Anon., 2019. Investopedia. [Online]. Available at: https://www.investopedia.com/ [Accessed 3 October 2019].

  • Doctor, K., 2015. FLIPHTML5. [Online]. Available at: http://fliphtml5.com/fkul/mgtf/basic [Accessed 1 October 2019].

  • T Hall, D. W. P. S. A. A. P. G. P. F., 2017. Accounting Study Guide. 2016 ed. Musgrave: New Generation Publishers .

Neha Pillay (2019)

Grade 10Keroshan PillayComment