Creditors Control Account Format
The Creditors Control Account is a summary account that records the total of all transactions with trade creditors for a period. It is used as an internal control tool to verify the accuracy of the creditors (purchases) ledger and to detect errors. Its balance should agree with the total of the individual balances in the suppliers' ledger.
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Blank format
| Date | Particulars | RM | Date | Particulars | RM |
|---|---|---|---|---|---|
| xx | Bank | XX | xx | Balance b/d | XX |
| xx | Discount received | XX | xx | Credit purchases | XX |
| xx | Returns outwards | XX | |||
| xx | Contra (set-off) | XX | |||
| xx | Balance c/d | XX | |||
| XX | XX | ||||
| xx | Balance b/d | XX |
The credit side records increases in what is owed; the debit side records reductions.
Draw a T-account with the debit side on the left and the credit side on the right; each side has Date, Particulars and RM columns. Align particulars neatly, enter the balance c/d on the debit side before the totals, and bring the balance b/d down on the credit side after the double ruling.
Parts of the format
- Account title
- Write "Creditors Control Account" centred at the top of the T-account as its title.
- Credit side (increases)
- Records the opening balance b/d and credit purchases for the period, the items that increase the amount owed to suppliers.
- Debit side (reductions)
- Records payments through the bank, discount received, returns outwards and contra entries, which reduce the amount owed to suppliers.
- Balance c/d and balance b/d
- The balance c/d is entered on the debit side to balance the account, then brought down as balance b/d on the credit side on the following date.
- Totals and double ruling
- Both sides are totalled on the same line and must agree, then closed off with a double ruling.
Filled example
Restoran Selera Kampung began January 2025 with a creditors balance of RM8,500. During the month it made credit purchases of RM32,000, paid suppliers RM28,000 by cheque, received RM1,200 discount, returned faulty goods worth RM800 and set off RM500 against a debtor.
| Date | Particulars | RM | Date | Particulars | RM |
|---|---|---|---|---|---|
| 2025 Jan 31 | Bank | 28,000 | 2025 Jan 1 | Balance b/d | 8,500 |
| Jan 31 | Discount received | 1,200 | Jan 31 | Credit purchases | 32,000 |
| Jan 31 | Returns outwards | 800 | |||
| Jan 31 | Contra (set-off) | 500 | |||
| Jan 31 | Balance c/d | 10,000 | |||
| 40,500 | 40,500 | ||||
| 2025 Feb 1 | Balance b/d | 10,000 |
Closing balance RM10,000 = (RM8,500 + RM32,000) - (RM28,000 + RM1,200 + RM800 + RM500).
Common layout errors
Related chapters and procedures
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