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Control Accounts. Debtors Control Accounts. Debtors Control Accounts. Normally the Debtors opening balance is a debit but some accounts can have a credit balance. The debtor will be owed money if he… overpaid an invoice. cleared his account & later returned goods for a refund.
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Debtors Control Accounts • Normally the Debtors opening balance is a debit but some accounts can have a credit balance. • The debtor will be owed money if he… • overpaid an invoice. • cleared his account & later returned goods for a refund. • cleared his account & later received additional discount.
Debtors Control Accounts If a debtor pays within 30 days they are given 1 discount. However if their cheque is 2 dishonoured this discount is 3 reversed
Debtors Control Accounts If goods are returned they are credited. If these goods had been paid then the Creditor must issue a refund Cheque
Debtors Control Accounts Interest is charged on overdue accounts Bills Receivable are written promises to pay stated amounts at future dates. treated like cheques received Bills due within 12 months - current Bills due after 12 months - non-current
Debtors Control Accounts If a firm owes money to a person and is owed money by the same person. The person will appear as a debtor and a creditor in the firms books. Contras are debts offset between debtor and creditor accounts for the same company
