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Home > Business > Running your business > Financial accounting > Balancing your sales (debtors) control account
Balancing your sales (debtors) control account
In a sales control account, the total of outstanding invoices at the beginning of the period and invoices raised during the period, less payments received for invoiced income, will give a balancing figure of invoices still outstanding at the end of the period - your debtors. You can then compare this figure with that of invoices outstanding and thereby detect any errors.
The control account | ||
Debit £ |
Credit £ |
|
Debtors at beginning of period (Outstanding invoices at beginning of period equal to closing balances for previous period) |
6589.36 | |
Total invoices in period (Total of sales day book - your list of invoices - gross figure |
13848.25 | |
Total receipts in period (Total from cash book of invoiced income) |
11250.57 | |
Debtors at end of period (Balancing figures, which should agree with prepared list) |
9187.04 | |
20437.61 | 20437.61 |
If your debtors list does not agree with the control account, check the following points:
- Have you listed all your debtors, including invoices only partly paid or outstanding from the beginning of the period, and invoices paid directly after the end of the period, because these receipts would not be in the cash book?
- Are there any invoices you will never receive payment for - bad debts - that you have not included in your debtors figure? These should be entered as a separate credit in your control account.
- Credit notes - does your total of invoices in the period include credit notes issued? If not, these must be included on the credit side of the account.
- Receipts from cash book should be only those that relate to invoiced sales or work done, not for the sale of a vehicle, loans, refunds etc. If included, these figures should be taken off the receipts figure in the control account.
- Un-invoiced sales - sales that should have had an invoice raised but by error did not -should be added to the invoice total.
- Receipts for sales that were not entered into the cash book will have to be included as a receipt on the control account.
- Addition errors of receipts, invoices or debtors totals, or duplication of invoices, receipts, or debtors in listings.
The amended sales control might look as follows:
£ | Debit £ | Credit £ | |
Debtors at beginning of period | 6589.36 | ||
Total invoices Sales not invoiced in error |
13848.25 521.20 |
14,369.45 | |
Credit notes | 210.40 | ||
Total receipts
Sales of vehicle Addition error |
11250.57
(3200.00) (29.06) |
8021.51 | |
Receipts banked in private account | 2100.00 | ||
Bad debts | 86.00 | ||
Debtors at end of period | 10540.90 | ||
20958.81 | 20958.81 | ||
Original debtors figure per list | 8064.23 | ||
Debtor paid after period not on list | 2526.00 | ||
Debtor included twice | (80.00) | ||
Invoice paid short, amount still outstanding | 30.67 | ||
Reconciled debtors as above | 10540.90 |
Do call us if you would like any further help or advice in this area.
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- Home
- About us
- Contact us
- Site map
- Search
- News
- Our services
- International services
- Business
- Starting a business
- Employed or self employed?
- Buying a business
- Initial costs of starting in business
- Proving your credentials to investors
- The tax system for the self employed
- Business deductions
- Claiming expenses
- Choosing your accounting date
- Buying a franchise
- The construction industry
- Preparing your business plan
- Essential record keeping
- The national minimum wage and the national living wage
- Working from home
- Insuring your business
- Tax planning for businesses
- Limited companies
- The tax system for companies
- Forming a limited company
- Pros and cons of limited companies
- Buying a company 'off the shelf'
- Tax and the company car
- Company bonus or dividend?
- Tax saving strategies
- Interest and tax payments
- Companies Act 2006
- Companies House - forms you need to know about
- The law and directors' responsibilities
- Statutory records
- The company secretary
- Getting the company struck off
- Running your business
- Partnerships
- Your employees
- Selling your business
- Starting a business
- Personal
- Tax
- Spring Statement 2018
- Tax rates and allowances
- Key dates and deadlines
- Income tax
- Corporation tax
- Inheritance tax
- Capital gains tax
- Value added tax
- National insurance contributions
- Residential property letting
- Main capital allowances
- Patent box
- Business deductions
- Penalties for late returns
- Trusts and settlements
- Non domiciled individuals
- Green travel allowances
- Mileage allowances
- Vehicle benefits
- Vehicle duties
- Pension premiums
- EIS SEIS and VCT
- ISAs
- Stamp and property taxes
- Air passenger duty rates
- Landfill tax
- Charitable giving
- Annual tax on enveloped dwellings
- Diverted profits tax
- Tax credits
- State pension
- VAT
- An introduction to VAT
- Value added tax
- Bad debt relief
- Issuing VAT invoices
- Recovering VAT on staff expenses
- Fuel scale charges
- When to add VAT
- Deregistering from VAT
- Cash accounting scheme
- Flat rate scheme
- Annual accounting scheme
- VAT dos and don’ts
- VAT inspections
- How to survive the enforcement powers
- Group VAT registration
- VAT Mini One Stop Shop (MOSS)
- PAYE and NI
- IR35
- Tax and business calendar
- Budget and Autumn Statement archive
- Calculators
- Career opportunities
- Our clients