All 25 Control Accounts questions
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How do dishonoured cheques appear in the sales ledger control account? What is teeming and lading and how do control accounts help detect it? How is refund to a customer shown in the sales ledger control account? Which errors affect the control account and which affect the list of balances? How do you prepare a sales ledger control account from incomplete information? How would an overstatement of the sales day book affect the control account reconciliation? How do you prepare a purchases ledger control account to find missing credit purchases? How does an omitted discount received affect the PLCA reconciliation? How does a contra entry affect both control accounts and the reconciliations?
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Bookkeeping › Control Accounts

How is a contra/set-off recorded in the control accounts?

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Answer

For a contra (same party is both customer and supplier), credit the sales ledger control account and debit the purchases ledger control account with the offset amount, reducing both. The same entries are mirrored in the two personal accounts. This reflects settling mutual balances net.
Contra 300:
  Dr Purchases Ledger Control 300
      Cr Sales Ledger Control 300
Real-world example Offsetting a mutual balance reduces both the receivables and payables control accounts by the contra amount.

Common follow-ups: Which control account is debited in a contra? | Are the personal accounts adjusted too?

Sales & Purchase Ledgers Correcting Errors Control Accounts
All 25 Control Accounts questions