Creditors Control
Creditors Control is an account that we use when we buy goods but we have not paid the seller yet.
It can also be referred to as Accounts Payable. Creditors Control is a liability as we owe money.
Phrases to look out for: on credit, on account, credit purchase.
When we buy from someone on credit the transaction that we record is:
Debit Whatever asset we purchased
Credit Creditors Control
This is recorded in the Creditors journal.
When we pay them we record the transaction by:
Debit Creditors Control
This is recorded in the cash payments journal.
Credit Bank
Creditors Control Exercise
Post the following transactions to the General Ledger.
1. We had an amount of R20 000 owing on our account with HD Stores.
We purchased Stationery with a selling price of R32 000 on credit from CPNA.
4. We purchased stock with a price of R24 000 on account from HD Stores.
5. We paid the amount that was owing to HD Stores on the 1st of the month.
8. We purchased Vehicles with a selling price of R450 000 on account from Suzundai Motors.
22. We settled our account with CPNA in full.
25. We paid R250 000 towards our account with Suzundai Motors.
29. We paid R12 000 in respect of our account with HD Stores.
Creditors Control
Dr
Date
Cr
Details
Folio
Amount
Date
Details
Folio
Amount
Stationery
Dr
Date
Cr
Details
Folio
Amount
Date
Details
Folio
Amount
Trading Stock
Dr
Date
Cr
Details
Folio
Amount
Date
Details
Folio
Amount
Vehicles
Dr
Date
Cr
Details
Folio
Amount
Date
Details
Folio
Amount
Bank
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Date
Cr
Details
Folio
Amount
Date
Details
Folio
Amount