control a/c ; free sample (10)

2010-11-17 4:31 am

I am studying accounting. I want to ask: (please answer in English)

1. Which ledger should Accounts Receivable Ledger Control / Accounts Payable Ledger Control be put in? Whether General Ledger or (Accounts Receivable Ledger / Accounts Payable Ledger)?

--> I am not asking the function of Control Accounts. Please do not give me the answer copy from website.

2. Free samples of goods (not for resale) are sometimes sent to customers. If the cost of free samples is significant, the required double entry is :
Dr Promotional expenses
Cr Purchases

I want to ask where should we put the "Promotional expenses" account?
Which book of original entry? Which ledger? Where in income statement or balance sheet? ( Is it an income statement item or balance sheet item???)

Thank you for your help !!!! Give you 10 marks !!!!

回答 (1)

用戶2576

2010-11-17 5:46 pm

✔ 最佳答案

Accounts Receivable Ledger Control / Accounts Payable Ledger Control are the control accounts in the general ledger. You have to keep separate sub-ledger for the A/R and A/P - Accounts Receivable Ledger / Accounts Payable Ledger, showing individual accounts in details. Monthly statements are usually be prepared from these sub-ledgers.The total of these sub-ledgers should agreed with the total in the A/R and A/P control Accounts in the general ledger.
You are right. The Promotional expenses account should be debited with a Journal entry and posted to the general ledger. The promotional expenses should be presented under the heading Selling and Promotional Expenses in the Income Statement ( Trading and Profit and Loss Account ).

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