2026 05 06 PoA F 5 Exam season Session 11 Control accounts PPQ review

What day is it? this is interesting. What are you on about? What are you on about? Zachary and Ella and All right. All right. Zachary, Ella, good afternoon. Yeah, sorry to disturb you, guys. Look, Masani was not He was kind of cranky, so realized he was sleeping. So, just let him sleep until he fell asleep. All right. So, Aaron, Ella here. see Anastasia for us. Yeah. He left and went home. see Jacob here. And is walking in, right? Yeah, is here. All right. Jonathan, Cole, not in here. Michael not here right now. Shazari here, Sumaiya here, and cool. That's everybody who was here. Yeah. 6 + 2 is 8. So, have eight there. Cool. And after this Miss Leticia, we're probably going to be doing control accounts. Right? Yeah, guys. So, if we keep with the time and go till 3:30, we could probably get through. Right? So, if you had to do prediction tomorrow. Nope, no predictions. have studied the past papers. looked at the ChatGPT. trying to predict is fool's errand, so do not don't encourage it. Right? what will be focusing on now are some topics that have not come for little while in the past papers. So, hold on. Let me just pull up my list. Where's my list? All right. Right. So, control accounts, manufacturing, errors and suspense reissues. want to touch on partnerships one of the big questions provision for bad debts and then budgets. Right? this is these are not predictions. These are just topics that we have noticed have not really come that often recently with the exception of partnerships having come kind of big in 2020, right? So, with that said right. So, this is the January Let me just do quick search here. Did not Yeah, so control we're searching by columns, right? Find all. What? Really? Why not? Control Okay, find all. Right, so that's control accounts theory. So, you didn't have to do control account then. So, that's not really to worry about, right? But there's going to Okay, so 2021, single item came. I'm not too interested in that. And 2018 before Right, 2017 before. That one was little weird, to be honest. And 2015 2013. So, it used to come as you could see it used to come kind of kind of consecutively, right? 2012 had 2010 had 2011, no, right? So, I'm going to pull couple cuz again, if you're watching now, we could possibly go till like quarter to four, near to four. I'm going to show we're going to continue, but it's also your energy level. Right? So, I'm not trying to force certain things, right? We are at be mindful. We have our exams this tomorrow and we have at least two or three more weeks of exams in some cases, right? So, we're not trying to burnout. it's Michael. Okay, cool. Hey Michael, good afternoon. Sorry to be so was late but know know starting there. So, we're going to hit up some control accounts. 2017 one is not good one to do. It's It's It's an interesting one. 2016, 10 years ago, this this paper was bit of mess, too. Especially question two. This is the only solution have never I've not put out between 2008 and 2023 and well, now 2026, January. All right. 2015 and then 2014 and 2015 manufacturing, too. Trading up. Okay, we are other remember that one. And then yeah, just just to give you an idea as well. All right. find all. 2024 control accounts theory. So again, no control account really. All right. 2022 theory again, but they have actual control accounts there. 2021 2020. So yeah. January comes kind of often, too. So they they were more bringing it in January recently. And then 2015 before that, so 6 years before that. Yeah, that was still when it was it was in computer records. So that don't really count, basically. 2011, wow. Yeah. Okay. So with that said, let's go is it still open? How did that happen? So no, close that off. Close that. Close that. Close that off. Right. accounting. Form five. should have Hold on. Control accounts. Past paper questions. Okay, have PDFs here. Solutions what? Write up? Okay. All right, Lara Bryan Somerset GT GT's good one. Have Croft right now. That was This was the 2015 one, right? That was then kind of replaced by Where was this boy? All right, Arrahali was the weirdish one. 2018, right? Where was the one that replaced this? It was in very similar format. Okay, maybe have to go to the that. July or August. 2025. Why 2024 still sinking? That's weird. 2020 version. Really? Okay. All right, so Lara Bryan Somerset. This is the the 2020 one. Okay, cool. Cool. Cool. One sec. Uh-huh. Uh-huh. Right. Okay, but no set off. want to do one with set off. Just to have set off either. Just have set off in it. Okay, not really. can't do one. can't spend all day looking at all the questions. So, we got to start something very soon. want to do GT for sure. And Zidane. Yeah, Zidane is bit of monster as you can see. He was like well now but even Zidane don't have set off. That was the funny part. Zidane had like possibly almost everything that can come in either one of them except the set off and corrections of errands. All right, so here what I'm going to do. We going to do simple one first. Right, as start as that. Right, okay cool. So I'm taking all the people inside of here so let's do that. Right, So what want to do close that, go back here, pull that and put it inside of here. Right, so Google Meet came on one sec. Let me pull out some stuff for you all. Hello, good evening. Okay. Uh-huh. Right. Okay, cool. Well, what's going on right now is we are in CSEC exam season and my form fives leave, will be taking on new students. So, Do the math and do the general? All right, cool. No, do math and math accounts and have friends working with me who teach physics, geography, chemistry, biology, IT, and something else, economics. Yeah. No, no. So, so the week of the 18th is when will be taking on well, new students. I'm trying to find spaces for them because totally expected form fours but we should send them up to be form fives but now they don't want to move. So, Yeah. Well, everybody does lessons for everything and so they already have time tables and structures in place so it's difficult for them to shift these and times where they have other things in place. So, Yeah, so think I'll use that as my phone number so what I'll ask you to do is when we finish talking I'm actually in class right now. So just send me your full WhatsApp me please and send me your full name, daughter's full name, phone three months and then I'll add it to the list or the whole list of students and then when that week comes we can add Also send me what days and times here will work better for you. Yeah. Well, like don't know what he does currently if she has any extra curricular any other lessons so Okay. Mhm. Okay, cool. Right. Yeah, okay, cool. Well then just send me what days and times are available. So if they give for example they say Tuesday and Tuesday or tell me Monday, Wednesday, Friday and then we can see what we can do. Okay, cool. No problem. Bye. when you send me text I'll send you contact properly and when you the phone files the the papers are done will reach out when like when find days and times. Yeah. Okay. Bye. Yeah, sorry guys. Take up one. Okay, cool. Okay. So maybe could do that instead? It's fillable. No, want to use my thing, right? All right. Yeah, guys. Sorry, should have been back on time to do all this. So, we running bit behind time right now. Anyhow, All right. So, we put that and then what we could do is we could do like 20 20 here, maybe 25. Yeah, and then pull lot across here. Right. So, we want hold on. So, control that. 1 2 3 4 5 6 7 8. Okay, cool. And then two more. Right. So, we're going to pull that down, too. I'll go there. Right. This this and then pull them as well. Lovely. Dollar signs. Okay. Lovely. Okay. So, folks, we taking look at Lara Bryan. All right. So, let's zoom in bit more so we can see things bit more easily, right? So, control accounts. What control accounts do is they summarize an entire ledger. What is ledger? ledger is book where you have accounts of certain kind. Your sales ledger has accounts of all of your debtors or your customers, people who owe money to you. So, imagine at point in time you want to know, "Hey, how much money does am owed right now?" Cuz let's let's say had big bill to pay or or you need you need the money to make an investment, or something came up and you needed money. So, hey, show my show my clients customers have money for me. How much do So, imagine you open your sales ledger and you're looking at 50, 60, 70 different accounts. And had balance 70 accounts. No, that is pressure. So, that's cumbersome task. It needs to be done, so that's why should hire an accountant. But of course, if you are the accountant, you have to have system by which you could do that and to cross-check it. The cross-check or the summary of the entire ledger is called the control account. And all you do for the control account is you put what we call the major totals in one account. So, instead of going through each and every single account, okay, look, sold them this much, they paid me that much, they returned some stuff, gave them some discount, and of course, 60, 70 times that gets real boring real fast, right? If you could do it once, then that's great. That's the purpose of the control account. And to that end, what they do with control account questions is they give you the summary information. Right? And all you have to do is plug it into the account and balance it off to know how much money is left at the end owing to you. Okay? So, of course, your question is, well, how do know what to go on what side? Right? Okay, at this stage, ladies and gents, you should know that debtors or receivables is an asset. What are your double entry rules for assets? Debit to increase, credit to decrease. Cool. So, the opening balance is usually on the debit side. And you could see on top here it has an opening debit balance. That's did not highlight it? Right. Cool. Right. Now, there's an opening credit balance as well. We'll talk about that after. Right. Okay, cool. Now, what is the primary interaction you have with your customers or your debtors? The primary transaction. What made them debtors in the first place? Credit sales. Right? So, credit sales is the other thing the other major item that should always be there. Right? Let's put that one in the green. All right. Now, when you make credit sales to people and they owe you money, what is your ultimate hope with respect to the money they owe you? You want them to pay you back. So, you want to receive the money. That's the next thing, right? Cash and checks received. Cool. Let's start with these three things right here. All right? Just these Just these first three things, right? We'll get little feel for what we have to do and we'll do them and then we'll go from there. That's That's quite big. don't need it to be that large. Thanks very much. Right? That's 280. No, 200 is fine. 220 220 is good, right? So, we here now. Let's pull that down little bit little bit, right? Cool. So, this is So, you can call it the debtors control more recently is the sales ledger control account, right? So, the control account is the summary of the entire ledger. Income statement more easy. You did English yesterday? Right. Is it CSEC period? It is, right. So, first things first, the sales ledger debit balance will go on the debit side. So, balance They call it balance at start. They call it balance brought down. Balance brought forward. Whatever. But, it goes on the debit side. Right? Why? Because the sales ledger control account is also called the debtors control account or the accounts receivable control account. However, you call it, it's an asset account. It's summary of bunch of asset accounts. As such, it follows asset double entry rules. Debit to increase, credit to decrease. Your opening balance usually goes on the debit side. Yes, it's possible to have credit balance. We'll talk about that in little while. Next. So, when you are entering the items, think about what impact these items will have on the amount of money your customers owe you because that is what this account is. It's summary of all of your customers' accounts, how much money they owe you. So, we said the item in green is the primary transaction that you have with your debtors, your customers, right? That make them debtors. Credit sales, right? They might also call it sometimes sales journal. Why? The sales journal is the book of original entry records what? Credit sales. So, if you see sales journal, that means credit sales. So, here's my question. When you make credit sale to someone, do they now Sorry, do they pay you? No. So, they owe you money, right? So, if you make second credit sale, they owe you more or less money now? More money. So, when you see credit sales for the month, that means, "Hey, I'm making more credit sales to my customers." So, therefore they owe me more money. So, your asset is increasing. On what side do you put that item therefore? The debit side. So, credit sales goes here. Boom. Right. And like said, what we ultimately hope with respect to the debtors is that they pay us back. That's the item in blue, cash and checks received. If somebody owes you $100 and pays you back 90, how much they have for you now? 10. So, when they paid you back, what happened to the amount of money they owed you? Increase or decrease? Decrease. Yeah. So, they paid you back 90, now they owe you 10, so they owe you less. So, the receivable has gone down, your asset decreased. And to record decrease in an asset, you have to go on the credit side. All right? So, you're You can put cash and checks received or you can put receipts from debtors. Either one works, either one is fine. Right? If you want to use back the same words they give you here, that's perfectly fine. It's good policy as well. Unless, of course, the space they give you can't accommodate it, right? Okay. Right. So, just for those three items, Jacob and Shazaria, are we okay with those first three items? Yeah? All right, cool. Google Meet. So, Aaron, Annella, Forest Jane, Michael Sumair, and Zachary. Just give me quick genie chart or thumbs up if you're okay with those three items. All right. I'll give it to somebody in particular. You know yourself. Uh-huh. You receive. Right. Cash and checks received, right? That's when your customers pay you back, right? You made credit sales to them, so they owe you money for those. And when they pay you back, that's what we call receipts from debtors or cash and checks received. So, when they pay you back, what happens to the amount of money said overall overall what this is supposed to do this whole account is supposed to show us how much money the debtors have for us. So, anything that goes inside here, ask yourself, what is the impact this item what impact will this have on the amount of money my debtors owe me? Is it going to increase it or decrease it? One second, Uh-huh. Right, right, right. Okay, cool. Right. Yeah. So, if your customers pay you back, it means they paid you back. So, therefore, they do not owe you as much money as they did before. So, the asset is decreasing. Right? So, therefore, it goes on the credit side cuz credits will decrease assets. Okay. Okay. So, those are the guess can say three major items. The opening balance, the credit sales, and the receipts from debtors cash and checks received. Right? So, hope you're okay with the receipts now. Let me know, all right? Well, thumbs up or something. Cool. Now, we have some more items. We have bad debts written off, discount allowed, returns inwards, dishonored checks, interest on open your accounts. Okay. Now, know we have this thing at the top here. So, no matter So, whatever. So, sometimes actually I'm going to come back to that, right? So, bad debts written off. Right? So, if customer So, let's say somebody inside of here, right? Who owes you some money and then they call and say, "Hey, am bankrupt. have no money. can't pay you." Here's my question. Can you still reasonably expect to receive the money from them? No. So, therefore, should you leave the amount owed to you inside here? No, because you're not going to get it. So, you cannot continue to record it as possible receivable. You have to remove it. Right? So, if you have debit balance and in that debit balance there's an amount that you're not going to get back, uh-huh? Sorry, one sec. Mhm. I'm sorry. Do you need to send more? yeah. don't know what it is. Thanks. Right, cool. Yeah. So, if have to write off debt, that simply means I'm removing it from the debit the debit balance. To remove it from debit balance or to undo debit, what do we have to do in the account? Credit credit, right? So, the bad debt written off, again, ask yourself, what impact is writing off the bad debt going to have on my receivables balance? When you write off debt as bad, it's going to decrease the receivables balance. Why? Because the debt was owed to you as part of this balance or maybe part of this balance. When the you do when you say, "Hey, can't pay back the money." then the debt no longer exists. Right? It has to It has to be removed. Right now it exists either here or here, but now you have to remove it. Cool. So, to remove debit item, you go to credit side. But, that's written off. 2570. Nice. Cool. Next, discount allowed. When we allow discounts, what are we essentially doing? We are telling our customers, "Hey, you can pay me less than you owe me." So, therefore, what you are doing is you are actually reducing the amount that they're going to pay you back. They're telling them, "Hey, pay me less. It's not problem." So, when you allow discount, you are actually reducing the amount that they have to pay you. So, if you are reducing the amount they have to pay, you are you are reducing the receivable, which is an asset, and to record reduction or decrease in an asset, you have to credit the asset account. What's that? Where? That's only people. That's only five, yeah. It's okay to be scared of people. You need It's okay. It's okay to be scared, but you got to do what you got to do. All right? That's what courage is. Courage is not the absence of fear, but doing what you need to do while being scared. Mhm? If you weren't scared, then it wouldn't be bravery. Right? Returns in. Okay, returns in or sales returns. When customers send back goods to you that they previously bought. So, let's say that somebody bought So, let's say the 1240 was included inside of this, right? And then somebody sent it back to you. "Hey, don't need this. Hey, something wrong with this. Wrong size, wrong color, it don't work, etc., etc." Angelo, was going to put that, but was going to put it later on. Yeah. So, when customers send goods back to you, do they still have to pay for them? No. So, what does that do to the amount they owe you? Reduce it. So, returns inwards also goes on the credit side. Does it decreases the asset of receivable. All right? Okay. So, I'm asking Jacob and Shazari, are we okay with those three items there? Yeah? Any questions, problems, issues, anything to clarify? No? Okay. Google Meet? Same question for you. If you guys are good with that, give me quick in the chat or thumbs up. So, you all understand? All right. Cool. All right. Right. cool. Now, we have two other items here that not irregular, but they're not as intuitive as what has gone before, right? Everything that went before would would call like regular or basic control account item, right? Now, we met we have met this on check already. dishonored check is what? When somebody pays you with check and you send it to your bank and your bank sends it back saying, "Hey, couldn't clear the money because the person didn't have enough money in their account or they forgot to sign the check or something was wrong with it, right?" Okay. So, initially, when we first got the check, we we would have recorded it here. Right? If somebody gives us check and they pay us back, it's going to reduce the asset the it's going to reduce the receivable, yes? Cool. So, that's why when you initially got the check, it went on the credit side on the receipts. But, if the check bounced, I'm question. Did you actually get the money? No. So, therefore, the you have credit here that that has to be kind of canceled or counterbalanced. To cancel or counter balance credit, you have to go on what side? The debit side. Vinnie, can't remember. This is 09, so this might This might be like 2010 or 2011 question. Right? So, dishonored checks go on the debit side here. Now, now think about the other half of it, right? Where did we see dishonored checks yesterday? When we did bank recs, on any cash book, right? So, in the cash book, what side do we put dishonored checks on? The credit side. So, if you put dishonored checks on the credit side there, every credit needs debit. So, you're debiting here cuz who who who would have Who would you have gotten the check from? Did tell? So, you're basically you're you're reversing the double entry, right? You're undoing the transaction. All right. And then, interest on overdue accounts. Okay, so if people take too long to pay, you might have stipulation in the payment contract where if you cross the 30 days, now you will start to incur 1% per week or whatever the case is, right? So, if you're charging people interest on on their late payments, it means they're not to pay you what? More or less? They have to pay you more. So, what the interest is doing is increasing the amount of money they have to pay you. It's increasing the receivable. It's increasing the asset. And how do you record an increase in an asset? With debit. All right. Who's that? Jada. My life and your life is pain. You're totally me you're your YouTube videos on your life. You was You were watching both at the same time? Yeah, that's pain. mean, you have two eyes, but only one brain. So, you can't watch both. Pick one. let's stick around. don't mind. But, if you if you want to stop it, right? They should probably check something else. I'm not running anywhere. You want to stay, you're welcome to. Anyhow, okay. Sh Shika bunch is out. Are we okay with dishonored checks and interest on overdue accounts? Any questions, problems, issues? Okay, Google Meet. Same thing. If you guys are good with that, genie chart or thumbs up, either one works. All right, good. All right, lovely. Thank you. You going to mark behind CXC. Do you want to mark? You want to mark? All right. so, did say would explain the sales as credit balance, right? Let me talk about that. credit balance So, remember when we did when was the question yesterday? There was cash at bank item in the credit column. And people were like, "Sir, why you didn't put the asset at bank?" I'm like, "Because it's liability." They're like, "How about liability?" Because it's in the credit column. If it's in the credit column, it's liability. Right? liability is when you owe somebody money. All right? they need to have no such thing as distinction. CXC has said that. didn't never say anything about distinction. they have no general view. They said they do good in our case. They said they said nothing about how they do what they do or what they do. They just give us exams that are poorly poorly constructed. And then we get results after that that we can't even really question properly. Anyhow, yeah. So, yeah. So, credit balance is liability, which implies that we owe somebody money. So, the question is, how do we end up owing our debtors money? Right? So, we could end up owing them money if we overcharge them, if they send us back goods that they paid for already and we were owed the money. Right? So, there are reasons why we could end up owing them money, but we don't we don't convert them into creditors, right? The relationship between us and the debtors is that they're debtor, right? They could have credit balance, which means we were owed them money for whatever reason, right? But we are not buying goods from them. Right? So, balance brought down, CR. Right, 610. Cool. Okay. So, we've entered everything here. There's one more item I'm going to put that's not any question, but I'm going to put it anyways, right? And that item is called the set off. Right? Or think it's also called contra entry. All right? Let me explain what set off is. And And this item goes in both the the debtors control and the creditors control. Right? So, in this case it's zero, but let me explain what the set off is, right? Cool. Let me say Jacob owes me $10, right? Okay, let me say Jacob owes me $10 and owe Jacob $10, right? So, if we wanted to kind of square off things, do either us either of us need to pay anybody anything? Not really. If owe you $10 and you owe me $10, we could just call it even, right? Cool. So, that's scenario one. In scenario two, let's say Jacob owes me $10 and owe Jacob $12, right? So, who owes So, owe him more than he owes me, right? But technically speaking, still owe him $10 plus an extra two. So, if we wanted to call this square, we could still cancel the 10, not so? So, if we cancel the 10, he owes me nothing, but still owe him two. Yeah? So, when we set off When there's set off between the sales ledger control account and the purchases ledger control account, right? It means that we're canceling amounts owed between us and the creditors. Because sometimes person from whom you buy goods might buy goods from you, but different types, right? So, that way it ends up being kind of back-and-forth mutual relationship. They are all They are our debtor and our creditor, right? So, we owe them money, they owe us money. So, whenever we settle off between the sales ledger control account and the purchases ledger control account, right? It's decrease. set-off is decrease to each account. The both of them, The both of them of the same amount. Now, sometimes they'll give you the amount, and sometimes they will give you figure from the purchases ledger and figure from the sales ledger. You always use the lower amount, right? Cuz if you look here, right? They owe me 10, owe them 12. What amount do we cancel? Do we cancel the 10 or cancel the 12? We cancel the 10, which is the lower amount. We always set off with the lower amount, all right? And cut it out. Every year have have control account with you up on YouTube right now. One of my first videos. And And it have Hold on. think the question is on this on this PDF stuff. I'm going to answer them when find it, right? not this PDF. This PDF. Yes, this one. 2014. Right. So, this one, right? So, firm Eskrow is supplier and customer of GT, right? And we are GT. And what they tell us is that we owe them 1050 and they owe us 375. And explained in the video, we use the 375 because it's the smaller amount. Every year it's like three or four people asking, "So, why do you use 1050, too?" Like, because it's the smaller amount. And explained in the video, pinned comment, all kind of thing. Explaining it with different figures, all kind of matters. anyhow, right? So anytime you have set off, right? Now most times they don't give you this. Most times what they do give you is hold on hold on where did this go? well, don't see any here. No, no set off nothing. No, no okay. Yeah, not even here. Yeah, not even last question. Yeah, so if they give you if they give you the set off figure all right, use that figure. If they give you two figures, use the smaller one. Look at here. See balance in sales ledger set off against balances in purchase ledger. So use that figure in both accounts. All right, cool. All right, okay. So I'm putting it here just to kind of give you format, right? No. Usually what you have to therefore do, right? When you prepare the control account is balance it off to find the ending balance. Now know they gave you an opening debit and an opening credit balance. If they wanted you to have both balances at end, they would have to tell you that. If they don't, just balance it off and carry the balance down from whatever side the balance. Let me show you, right? Boom. Boom. So the debit side total is 6,200. Credit side total is 52,020. So clearly the balance will be carried down from this side. And to find the balance you take the bigger bigger total and subtract the smaller total. 8180, right? And then you bring your balance down on the next side. Right. Cool. And that is your sales ledger control accounts. All right. Okay. All right. Jacob and Shazaria, how we feeling with the sales ledger control account so far? Yeah, all right. same thing for Google Meet. Google Meet just give me quick chat or thumbs up if you're good with what have on the screen. Yeah? All right, lovely. Sorry. All right. Uh-huh. No, that's fine. Hey. All right. So, that is Laura Bryan. Sales ledger control. Let me take off this stuff right here. All right. Feel like there was one more item should have gone this side. don't know. Refunds. Right. Now, just by the way, if they don't give you an item, you don't have to put it in, Right? I'm just putting this here. I'm putting these two here because want you to have like kind of format, like the possible items that could come. Right? Now, of course, there are there are other items on the debit side but these are the major ones, right? Now refund goes on the debit side because What is refund? When you give people money back, right? Okay, so think about it from this perspective. Let's say we give them refund because they paid us too much money. Where was that payment? That was here. Well, receipt, sorry. said payment. That receipt was So suppose they paid us too much money. So it means that the credit item will be too high. So when you pay them back money, you have to go on the opposite side to act as decrease to the credit. To decrease credit, you have to debit the account, right? The other way to think about it is if you are giving them refund, it means you're actually paying them money, which means money is coming out of either what? Cash or bank. Okay, if money is coming out of either of those, right? How do you record that in in the asset account? If your asset is decreasing If you're making payment, your asset is decreasing, right? To record that decrease in an asset, you have to credit the asset account. And if you're crediting cash or bank, guess what? You have debit where the money is going. So you credit where the money is coming from and you debit where it's going. Credit cash or bank, debit debtors or sales ledger control account, right? That's that piece there. All right. What like to do now is go through the purchases ledger control account. All right? So with that said, let me pull that out. For the sales, whenever you're losing money is credit. Any money is debit. yeah, basically. You could You could say that. It's asset. Yeah. So the asset is decreasing. You have to go to record our data credit. And if the asset is increasing, you record our data debit. That's correct. What's the name of this? Elsom asset. And creditors control. Okay. let me print this up for my peeps in class. And those online, let me send it to you as well, right? Why is it taking so long to go? Okay, it just went. Right. So Google Meet, you guys can download that file on the TA account. The control accounts behind are fillable. So you can Right. So Elsom asset presented the following in 4 20 months of October. all the payables. 6 months. next week Sunday past 2000 people. Exactly. Okay. Sorry. don't know what happened there. All right, just the current page. Two copies. No, when give you this one, you'll have You'll have the control of the annex. Okay. Right, how to memorize these formulas? All right, you got to practice them. That's what had to do yesterday. Why do look fuzzy? All right, cool. Right, so Somerset. Right, presented the following information for the month of October 2012. Right, so creditors ledger control. So okay, so just like with the debtors control or the sales ledger control account, it summarizes the entire sales ledger. All of the people who owe you money, you put all of it in phone one account. Pull it from the the books of original entry, yeah? The purchases ledger control account summarizes the entire purchases ledger. So all of the people to whom you owe money will go in this account, but not every single detail from every single account, just the summary figures. All right? So let me explain. Right. So the first thing is that sorry, let's get yellow first, please. Yeah. So, creditors ledger control account credit balance. All right. So, again, creditor or an accounts payable is somebody to whom you owe money because you bought goods on them bought goods from them on credit. So, if you owe somebody money, how do you classify that as liability, all right? And the balance in the account will be credit balance. That's correct. So, this is some some of this. Let me Let me just kind of zoom in here, all right? 274 Okay, we could do 250. Yo. Yeah. Correct. Yeah. Yeah, you just flopping it. Yeah. Yeah, so she's having good thing there. Basically, what's going to happen here is that you just you just kind of flipping or inverting the debtors control, right? So, again, let me explain little more in depth on that. Right. So, the purchases ledger control account, right? Is the summary account for the whole purchases ledger, which is all of your accounts payable, creditors, which are liabilities. And liabilities usually have credit balances. So, the opening balance here will be on the credit side. Now, yes, you're seeing debit balance. That's special case, which I'll talk about just now. All right. The next So, what is the major transaction you have with your creditors, your accounts payable? Why do you owe them money in the first place? Because you bought or purchased goods from them on credit. And that's what this item is here. That's what want in green. Now, know it says purchases for the quarter, but that was that was typo, right? Cuz they want you to do the control account for the month of 2012, right? So, it it's supposed to say purchases for the month. All right. So, check this, right? If you make credit purchase from somebody, it means you bought goods from them on credit, which means you didn't pay for it right away. Which which is the implication is that you now owe them money. Right? So, in this case here, in the in the case of the control account, when you have credit purchases, it means that hey, my balance went up. So, if you owe them 25,400 at start and you bought 123,900 more worth of goods, you now owe them more money. So, your liability is going up. And to record an increase in liability, you have to go on the credit side. So, credit purchases 123,900. Cool. And then the other major item is here in what will choose as blue. Right. Now, ultimately, so when you buy or purchase goods on credit from somebody, ultimately, what do you have to do? You have to pay them back. When you pay them back, you know, do you would you owe them more or less money than you owe them before? Less. had to give all of this this this story, right? So, back in 2021, during the business classes, there was there was young man, no matter how many how phrase the question how ask them, say, "So, if somebody pay you back, do you now have more or less money for that? You have more. say so if you owe me 100 and if you pay me 80, do you owe me more or less? owe you more. You know what he was answering? He said have 20 for me. So he have $20 more. said but do you agree that 20 is less than 100? Yes. So you you know owe me less than you did before. owe you more. Yes. Anyhow, right. So long story short, payments to creditors goes on the debit side because that the payment to creditors will decrease the liability. And to record decrease in liability, you have to go on the debit side of the liability account. Creditor is clearly. Okay. All right. take bunch of sorry. Are we okay with the first three items there? Any questions, problems, issues? Anything? No? All right. Google Meet didn't tell you. If you guys are good with what have so far, give me quick genie chart or thumbs up. Either one works. If you need me to re-explain anything, now is good time to tell me or ask. Yeah? All right, cool. Yo. Yep. Yep. No, you're you're correct. The only thing that wouldn't translate is the balance. Okay. Let's talk about some of the other item, right? All right. So we have returns out. So if we send goods back to the creditor, do we still owe them money for those goods? No, we don't. Which means that returns outwards decreases the liability, which means it will go on the debit side. similarly, discounts received That's when the the the supplier says, "Hey what? You owe me $2,512. Knock off the 12 now. Why not just pay me 2,400?" So, like, okay." Right? you're knocking off $112. So, what they are doing is the creditor is decreasing the liability for you. And of course, to record decrease in liability, you have to record it on the debit side. Discounts received. Okay. I'm going to talk about the refund one time. Cuz kind of going on and on, right? all right. Refund from creditor due to damaged item. Okay, so when somebody is paying you money, you are getting money. Yes? Cool. In your cash book, if you get money, on what side do you record it? Debit or credit? Debit. Debit. All right, good. And therefore, the account that was paying you or where the money is coming from, how will we record it there? Credit. Every debit is credit. Very good. So, you'll see refund. All right. 1180. Okay. have three more items there. The returns outwards, discounts received, and then the what you call it, the refund. Dear conveners, are we okay with those three items? All right. Google Meet talk, you know? If you guys are good with that, you know, could change it up little bit. That escalated quickly. What year is this? 2015, think. All right. Here it is. sleep knocking at my doorway. might have to might have to cut that top off actually and shoot but we can't do that. So have to do that little later. All right. All right, check returned. Hold on. That's not all. Okay. Check returned by creditor presented too late about. So that's like got this on check, right? Okay. So when we paid them initially, that would go here, right? Okay. So if we paid them some money and then one of the checks bounced, did we actually pay them? Did the money come out of our No. So we have We didn't actually pay them. So this debit has to be So in other words, we debited them with figure that wasn't actually taken out. So we have to kind of undo the debit or counter balance the debit or cancel it. All right? So to cancel debit, you have to go on the credit side. Returned check. All right. I'm seeing it set off and I'm seeing received from creditor due to overpayment. that sounds like refund to me, but it's separate, right? That one is the 284. Sorry, 284. Cuz again, remember, if somebody pays you money, you are getting money, so your cash will going to go up with debit. And every debit has corresponding credit. Your credit where the money came from and your debit where it's going. last item set off between it credit right. So, the set off always goes on the decrease side. In your purchases ledger control account, because it's liability, the decrease is going to debit side. All right. So, did these three items. Return check. Right, the refund We talked We talked about refund already, right? If we receive from credit as refund, right? So, I'm I'm I'm assuming this one is okay, right? So, let me know about those items, right? Set off and those two. So, we said the set off always decreases the balance. You major balance in your account in your control account, the major balance is on your right, the credit side, right? That's the reason. After decrease credit item, you have to go on the debit side. And then refund due to overpayment, fine. And then the set off. Sorry. Yeah, really want to knock it out here. was contemplating and passing class second coffee. said, "No, but maybe should have." Anyway, we done here. All right. Choose Aryan Jacob. Did ask you to give me those already? Those three? All right, cool. Google Meet the same quick genie chart to forget about those three items. Set off on the debit side, the return check on the refund due. If you're good, cool. If not, let me know. I'll answer the questions. Once finish this, stay awake for little bit more. All right. Okay. and the last thing, which is what didn't put in, was the debit balance, right? okay. All right. So, balance implies an asset. We us owing somebody money is not an asset from our perspective. From theirs, yes. From ours, no. But debit balance is an asset. So, how does that How does that factor in then? Right? That's because sometimes our creditors can owe us. So, remember you see how it says refunded overpayment? So, maybe we overpaid in the previous period and they end up owing us money. Right? So, that's why. And then in this period, they paid us back some whatever the case was. Fine. We don't know. We speculate. Right. Okay. Then the balance on Yeah, had had to take walk or something because Yeah, you all know what is going on right now with me. Right. Now, yes, they gave you an opening debit and an opening credit balance, but unless the question itself make reference to it or indicate some way some way to record the figures. Sorry, forgot what was saying. Yeah, you you will only have closing credit balance, right? So, so clearly 154 is greater than 106. So, your balance will be carried over on this side. And that will be equal to 154.64 minus my god. Hey guys. Okay. no. What did do? All right, so that is your purchases ledger control account to your creditors control account. All right. All right, if there any final questions, now is good time to ask. If not, what I'll do is I'll give you question to try. But feel what I'll have to do is I'll have to give it try, and then I'll have to log off. have to go and take like quick shower or something to wake up and come up because right now I'm between zero and well, one and two on the awake scale. Zero would be sleeping, but yeah. That's because, yeah, got up got up about 12 hours ago, half past three. went back to bed, but broke broke my sleep. Okay. All right, folks, yeah, do apologize. what need to do, need to give you the question to try. In the break in the break, and when come back, we'll correct it, right? But need to go cuz if try to keep keep going, I'm it's not going to be pretty. It's going to be bad. All right? So, with that said, I'm going to give you relatively simple one, but I'm going to I'm going to talk you through it little bit before leave you with it, all right? and that's actually going to be the most recent one. Sorry, no, it's not the most recent. It's It's 2020. think the most recent was 2022. no, it is that one. the other one. One sec, All right, so you want to ignore that, Ethan. Okay, Google This one is for you. You have to do John's 2020 first. All right, you know, right? Right, so will leave John 20 Actually, no, can't leave anything because need to log off cuz I'm I'm going to leave the room. So, everything is going to kind of close down, right? Okay, so folks, what they have done here is they've given you the combined information for both debtors and creditors, credit sales and credit purchases, right? You have to do the control account for each one, right? Now, you may not see all of these items that appear in the format, that's okay. Put what is relevant and balance it off, bring it down. All right, so let me give the physical copies to those in class. All right. I'm crossing them off this one. This one should be the last exercise. You got something? just want you to know, all right? What you're going to notice about these questions is that they look very similar. So, if give you the duty journal, I'm trying to turn to this last John's, please. John's, please. When you finish this one, then you know this is it. Okay, the reason John's need to go and take nap and then I'll show up or something like that cuz am literally not helping myself here. Okay. Google Meet, sent you guys the stuff on WhatsApp. no, did not send it. Right. So, Jan 2020 and then May 2015. Right? If you look, both questions are practically identical. The Jan 2019 column is the opening balances, by the way. Right? long story short, you are required to find the closing balances. and please note, there's only one balance in the account, which is the regular balance. So, for accounts receivable, if you're being debit side, for accounts payable, credit side. Right? Yeah, think we should be okay there. All right, guys. got to log off for little bit because yeah, can't make it. All right? will be back at 4:00. Yeah, need to go. All right? I'm sorry. Have you made some Yeah, control the comfortable to the last credit line here. First comfortable. Vladimir, Vladimir. normally have do forms. Four months cup today, one hot, one cool. then do today, little bit got got latte from Starbucks. Two up shots. Clearly didn't work. today stopped working. Two hour nap. Two hour nap, but got