Accounting Doubt....help pls

[Kulsum Shoaib]

Is contra and set-off the same thing in control accounts?
In this paper: http://www.xtremepapers.com/papers/CIE/Cambridge IGCSE/Accounting (0452)/0452_w11_qp_23.pdf
Q3)(c)
Where will the contra appear and why?

 

[yuyu_373]

Is contra and set-off the same thing in control accounts?
In this paper: http://www.xtremepapers.com/papers/CIE/Cambridge IGCSE/Accounting (0452)/0452_w11_qp_23.pdf
Q3)(c)
Where will the contra appear and why?

In the sales ledger control account contra entry always comes on the credit
In a purchases ledger control account it is the opp. comes on debit !!
contra and set-off are the same

 

[Kulsum Shoaib]

Thanks for answering but would you mind telling me, why is it that contra in sales ledger comes on the credit side?

 

[yuyu_373]

well i dont know it is somethng u hv 2 memorize it i asked my teacher the same ques. thts wat he answered!!

 

[Kulsum Shoaib]

Anyways, it alright. Thanks once again.

 

[yuyu_373]

Anyways, it alright. Thanks once again.

Anytime !! :') good luck !!

 

[Meg]

Is contra and set-off the same thing in control accounts?
In this paper: http://www.xtremepapers.com/papers/CIE/Cambridge IGCSE/Accounting (0452)/0452_w11_qp_23.pdf
Q3)(c)
Where will the contra appear and why?

Sales ledger = Debtors' Ledger.
Purchase Ledger = Creditors' Ledger.

Now think which side would the contra entry come and why?

 

[maheenhemani]

i think the contra entry would come on the credit side of the sales ledger cos the amt set off will in a way be a loss fr the business A
as that amount is now settled wid the amt they owed to business B who bought frm business A. hence they wont really earn frm their sales...
i hope its not that confusin i tried to make it simple

best of luk to u!

 

[nor]

hi guys question
where exactly do we write the trade discount other than in the invoice
APPRECIATE A SOON REPLY.