MGT101 Formats of Debtors and Creditors Control

Formats of Debtors and Creditors Control Accounts

Following are the maximum possible items that may appear in Debtors Control Account and Creditors Control Account. While preparing Debtors Control Account, it must be noticed that its debit side should show the items that will cause increase in debtors’ balance and items in credit side will cause a decrease in debtors’ balance.

In the same way items that will cause increase in creditors balance are put in its credit side and items that will cause decrease in creditors balance are put in the debit side of Creditors Controls Account.

Let’s go through the following formats of Debtors Control Account and Creditors Control Account:

Debtors’ Control A/C

Trade Receivable Control A/C

Opening Dr. Balance b/f Opening Cr. Balance b/f Credit sales (Invoice issued) Cash received from debtors Refund to debtors Cheques received from debtors Cheques dishonoured Bills receivable accepted by debtors Bills receivable dishonoured Discount allowed Interest charged to debtors Bad debts Sales return (Credit note issued) Contra / set off / balance transferred Closing Cr. Balance c/f Closing Dr. balance c/f

Creditors Control A/C

Trade Payable Control A/C

Opening Dr. Balance b/f Opening Cr. Balance b/f Cash paid to creditors Credit purchases (Invoice received) Cheques paid to creditors Bills payable dishonoured Bills payable given to creditors Interest payable Discount received Purchases return (Credit note received) Contra / set off / balance transferred Closing Cr. Balance c/f Closing Dr. balance c/f