3) Post Cost Bookkeeping entries using integrated accounting systems. Example is acceptable. a.

Creditor Control Account - Purchases Ledger Control Account, also known as the Creditors Control Account or Total Creditors Account, represents all the creditors in the Purchases Ledger. Since the amounts of the creditors are not in the General Ledger, a Control Account to replace them has to be constructed and included in the General Ledger to enable a Trial Balance to be drawn up.

Purchases Ledger Control Account (Creditors Control Account) Cash Bank Discount Received Purchase Returns/Returns outwards Contra Balance c/d Balance b/d It acts as a check on the individual creditors accounts and must be prepared independently and not from information in the individual creditors accounts. The information to prepare a purchases ledger control account is obtained from the books of prime entry. The sources of information are summarised: Item Total Opening Balance Purchases Purchases Returns/ Return Outwards and Allowances Cash and cheques paid to creditors Discount Received Refunds from creditors Interest charged on overdue accounts Source of information Trial Balance Purchases journal Purchases Returns journal Cash Book Cash Book Cash Book General Journal + Balance b/d Purchases Interest charged Other charges by Creditors Bank/Cash Refunds

Other charges

General Journal

b. Debtor Control Account - The Sales Ledger Control Account, also known as the Debtors Control Account, contains all the details of the debtors accounts in the Sales Ledger, but in totals. One of the totals in the Debtors Control Account is total sales which is the aggregate of all the sales entered in the debtors accounts.

Sales Ledger Control Account (Debtors Control Account) + Balance b/d Sales Bank (dishonoured cheque) Bank/Cash Refunds Interest charged Interest on debt Discount allowed withdrawn Other charges Balance b/d Cash Bank Return inwards Discount allowed Bad Debts Contra Balance c/d

The information to prepare a sales ledger control account is obtained from the books of prime entry: Item Total Opening Balance Sales Sales Returns/Return inwards and Allowances Cash and cheques received from debtors Discount allowed Source of information Trial Balance Sales journal Sales Returns journal Cash Book Cash Book

Dishonoured cheques Refunds to debtors Bad debts written off Interest charged on overdue accounts Discount allowed withdrawn Other charges

Cash Book Cash Book General journal General journal General journal General journal

The sales ledger control account is drawn up at the end of the financial period and balanced. The total of the balances on all the individual debtors accounts should agree with the balances on the control account. If they differ, it indicates that there is an error in the control account.

c. Wages Control Account - Wages control account is an account used in a management or cost accounting system, to record both direct and indirect labour cost. Using the traditional T accounts, it obviously has two sides; debit and credit. Direct labour cost are creditted to the wages control account and has its corresponding entry in the work in progress control account(debitted). Indirect labour cost will also be creditted in the wages control account and the corresponding entry in the production overhead control account. Wages Control Account Wages Tax xxx xxx Work in Progress Production Overhead xxx xxx

d. Overhead Account - Ledger account which records labor and non-labor expenses that cannot be directly associated with a specific cost area, job, or task. This account is debited with underabsorbed overheads and credited with over-absorbed overhead amount. The net balance in this account is transferred to costing profit and loss account.

Overhead Account Debtor xxx Profit And Loss xxx

e. Raw Material Control Account

Raw Material Control Account To balance b/d To nominal ledger control a/c xxx xxx By WIP Control a/c xxx

By nominal ledger control a/c xxx By balance c/d xxx

(f) Work-in-progress control account - This is also known as job ledger. It contains a separate account for each job or workinprogress.The elements of cost is debited to this account and is credited with the amount of finished goods completed and transferred. The balance in this account represent cost of incomplete job.

WORK-IN-PROGRESS ACCOUNT To balance b/d To raw materials (Balancing figure) To wages (3) To overheads (4) xxx xxx xxx xxx By finished goods By balance c/d materials Labour (2) Overhead (2) xxx xxx xxx xxx

(g) Finished goods control account - This ledger contains a separate account for each item of finished product or completed job.This account is debited with the cost of finished product and the amount of administration overhead absorbed and credited with the cost of goods sold. The balance in this account shows the closing stock of finished goods in terms of value.

FINISHED GOODS CONTROL ACCOUNT To balance b/d To work-in-progress control a/c xxx xxx By cost of goods sold a/c By Balance c/d xxx xxx

(h) Provision for depreciation Provision for depreciation Production Overhead xxx