GROUP 3E

FAC 1502-S1-2016

UNISA
CREDITORS CONTROL ACCOUNT
[STUDY UNIT 13]

Prepared by Ramashau Aluwani

2016-03-27

UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

STARTING LINE-UP

Intro
Creditors Control
General Ledger
Golden Rules
Revision Exercises
Check-list
Motivational Quotes

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UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

INTRO
Dear Honourable Members
We are rolling

Go through the notes on Study Unit 13 and dont forget to attempt the
previous exam question papers to assess yourself if you have understood the
golden rules and principles.
NB: My advise is that do as many question papers and revision exercises as
possible and make sure you compare your written answer to the solution
Practice Makes it Permanent
Always remember, there is no better time to pass FAC1502 than this semester.
The ball is in your court!!!

Enjoy Easter Sunday!!!

Kind regards
Mr. Ramashau Aluwani
UNISA E-TUTOR: FAC 1502 (GROUP 3E)
All progress takes place outside the comfort zone Michael John Bobak
2016-03-27

UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

Creditors
Creditor occurred from purchase of goods and services on credit.
When creditor is paid within a specific period according to an
agreement, the business may get a discount on outstanding account.
Settlement discount received is deducted in determining the cost of
purchases.
Credit purchase transactions are recorded in the purchases journal,
the creditors ledger and creditors control account.
Liabilities (e.g Creditors) increases on the credit (Cr) side and
decrease on the debit (Dr) side of the account.
Current liabilities are debts that have to be settled in the short term
usually within a year, e.g Creditors.
Creditor control account in the general ledger represents all
individual creditors in the creditors ledger.
PLEASE NOTE THAT FOR MORE INFORMATION GO TO STUDY GUIDE - STUDY
UNIT 13 (CURRENT LIABILITIES) FROM PAGE 263
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UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

Creditors Control Account

The main purpose of the creditors control account is to
summarize all transactions that influence (change) the
accounts of the individual creditors.
Once a month, when the totals of all the creditors control
columns in all the subsidiary journals have been determined,
the amounts are posted to the creditors control account.
Creditors control account reflects a summary of the individual
creditors transactions and the balance of the creditors control
account must equal to the total of the individual creditors
account balances.

2016-03-27

UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

Creditors Control Account

Journals to be posted at the end of the month to
Creditors Control Account
Purchases Journal (PJ)
Purchase Returns Journal (PRJ)
Cash Payment Journal (CPJ)
General Journal (GJ)

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UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

GENERAL LEDGER OR T ACCOUNT

Example of Creditors Control Account in the General Ledger

Creditors Control Account

Bank

CPJ

xxx

Balance

b/d

xxx

Purchases returns PRJ

xxx

Purchases

PJ

xxx

Journal debits

GJ

xxx

Interest expense

GJ

xxx

Balance

c/d

xxx

Journal credits

GJ

xxx

xxx

xxx
Balance

2016-03-27

b/d

UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

xxx

Take Note of Golden Rules

If information was omitted or was transferred incorrectly from the
source document to the purchase journal both the creditors control
account and the individual creditors account will be affected by the
mistake.
If the information was entered correctly in the journal but a posting
error was made to the creditors ledger, the individual creditors account
must be corrected and the creditors list must be adjusted to correct
the error.
If an adding mistake was made in one or more columns in the journals,
the correction must only be made in the creditors control account
NB. For summary of procedure refer to page 267 of the Study Guide
Undercast means that the total is less than it should be.
Overcast means that the amounts have been added up incorrectly
and that the total amount is more than it should be.
You are expected to reconcile the total of the list of creditors balances
with the balance of the creditors control account (refer to Page 273 of
the Study Guide under Required No.2)
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UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

MUST DO EXERCISES
Previous Question Papers
Question 2 : Oct-Nov 2013
Question 5 : May-June 2014
Question 1 : Oct-Nov 2015
Tutorial Letter 102
Question 4 (Tutorial 101- Page 10)
Study Guide Revision Exercises
Exercise 13.3 - Page 268-269
Revision Exercise 3 - Page 272-273
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UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

CHECK-LIST
NO.

TOPIC

STATUS

1.

STUDY UNIT 1 -5

DONE

2.

STUDY UNIT 6 & 7

DONE

3.

STUDY UNIT 8

DONE

4.

STUDY UNIT 9

DONE

5.

STUDY UNIT 13

DONE

6.

ASSIGNMENT NO.1

DONE

2016-03-27

TICKBOX

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MOTIVATIONAL QUOTES
Set your goals high, and don't stop till you get there. Bo Jackson
What you do today can improve all your tomorrows. Ralph Marston

A creative man is motivated by the desire to achieve, not by

the desire to beat others. Ayn Rand
I come to win. Leo Durocher
One way to keep momentum going is to have constantly
greater goals. Michael Korda

Go for it now. The future is promised to no one. Wayne Dyer

Things do not happen. Things are made to happen. John F. Kennedy
Do something wonderful, people may imitate it. Albert Schweitzer
Go Big or Go Home-Best or Nothing Ramashau Aluwani

2016-03-2B

UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

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WELL DONE & KEEP IT UP!!!

GO FOR GOLD!!!
THANK YOU!!!
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UNISA E-Tutor: RAMASHAU FAC1502-S1-2016-GROUP 3E

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