Record transactions in ledger control accounts
Use a sales ledger control account for trade receivables and a purchases ledger control account for trade payables.
Cambridge International AS & A Level Accounting 9706, 2026–2028 syllabus, Version 2. These lessons cover Topic 1.4 only. Practice is self-checked, not an official Cambridge grade; the separately published 2029 syllabus, timed papers and human subject-teacher review remain outstanding.
Before you begin
- Use double-entry, ledger and trial-balance knowledge from Topic 1.2. Reconciliations compare records with independent or separately maintained evidence; an unexplained difference needs investigation.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which balance normally appears on the debit side of a sales ledger control account at the start of a period?
What you will learn
- Explain the purpose and layout of sales and purchases ledger control accounts
- Record routine entries in each control account
- Distinguish control accounts from individual personal accounts
Post totals to the correct control account
A sales ledger control account summarises amounts owed by credit customers. Its usual balance is a debit: opening receivables and credit sales are debits; customer receipts, sales returns, discounts allowed, irrecoverable debts and contra entries are credits. Closing receivables is the balancing debit.
A purchases ledger control account summarises amounts owed to credit suppliers. Its usual balance is a credit: opening payables and credit purchases are credits; payments, purchase returns, discounts received and contra entries are debits. Closing payables is the balancing credit.
Separate total accounts from personal accounts
The control account contains totals; the individual sales or purchases ledger accounts contain each customer's or supplier's movements. Entries in a control account do not replace the double entry in the general ledger and should be supported by totals from the relevant books of prime entry.
A contra entry offsets amounts when the same party is both a customer and supplier. Reduce receivables and payables by the agreed amount, recording the debit and credit in the respective control accounts and personal accounts. Confirm the set-off is authorised.
Pause and explain
What does a purchases ledger control account summarise?
Worked example
Opening trade receivables are $4,800. Credit sales are $12,000, receipts $10,500, sales returns $300 and discounts allowed $200. Calculate closing receivables.
Show the worked solution
- Debit the sales ledger control account with opening receivables $4,800 and credit sales $12,000.
- Credit it with receipts $10,500, returns $300 and discount allowed $200.
- Closing receivables = 4,800 + 12,000 − 10,500 − 300 − 200 = $5,800 debit.
Answer Closing trade receivables are $5,800 debit.
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Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
Opening trade payables $3,200; credit purchases $9,400; payments $8,100; purchase returns $250; discounts received $150. Calculate closing trade payables.
Give me a hint
Payables increase with credit purchases and decrease with payments, returns and discounts.
Compare my reasoning
- Credit side: opening 3,200 + purchases 9,400 = $12,600.
- Debit reductions: 8,100 + 250 + 150 = $8,500.
- Closing payables = 12,600 − 8,500 = $4,100 credit.
Closing trade payables are $4,100 credit.
Look for these in your work
- Entries assigned correctly
- Reductions totalled
- Closing balance correct
A customer who owes $600 also supplies goods to the business and is owed $450. The parties agree to set off $450. State the control-account entries and the remaining customer balance.
Give me a hint
Reduce both receivables and payables by the agreed amount.
Compare my reasoning
- Credit the sales ledger control account $450 to reduce receivables.
- Debit the purchases ledger control account $450 to reduce payables.
- The customer's remaining receivable is $600 − $450 = $150 debit.
Dr Purchases ledger control $450; Cr Sales ledger control $450. The remaining receivable is $150 debit.
Look for these in your work
- Both control accounts stated
- Directions correct
- Remaining balance correct
A sales ledger control account is credited with a total of $15,000, but the individual customer accounts are credited with only $14,600. Name two checks before assuming a $400 posting error.
Give me a hint
Reconcile the source total and check whether all entries were posted for the same period.
Compare my reasoning
- Re-add the cash book or receipt listing and verify the $15,000 control-account total.
- Check for a $400 entry posted to another account, a timing difference or an incorrectly included contra or discount.
- Compare each posting reference and date before correcting the ledger.
Check the source total, dates, contra and discount entries, and posting references. The difference may be a control posting error, but establish the cause before correction.
Look for these in your work
- Source total checked
- Possible causes considered
- Evidence before correction
Common mistakes
- Debiting receipts in the sales ledger control account
- Crediting purchase returns to the purchases ledger control account
- Treating an individual supplier balance as the control-account total
What can you explain now?
Where is a receipt from a credit customer entered in the sales ledger control account?
Compare with the explanation
On the credit side
The receipt reduces the amount owed by customers.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
State the normal balance and two decreases for each control account.
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.