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February 14, 2026, 04:19:54 am
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TyErd

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question
« on: June 05, 2010, 06:09:04 pm »
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If the owner purchased or sold a NCA on credit what are the general journal entries?
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mba

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Re: question
« Reply #1 on: June 05, 2010, 06:49:16 pm »
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I'm pretty sure this is U4 under the current study design. However, if you did get it it would only be a purchase of a NCA on credit, not sale as sales of NCA are done in U4.

DR NCA XXX
  CR Creditors Control XXX
  CR Sundry Creditor - (Name of creditor) XXX

MBA
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TyErd

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Re: question
« Reply #2 on: June 05, 2010, 08:10:28 pm »
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so you would still use creditors control even though it doesnt involve stock?
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mba

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Re: question
« Reply #3 on: June 05, 2010, 08:21:00 pm »
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Quote from: TyErd on June 05, 2010, 08:10:28 pm
so you would still use creditors control even though it doesnt involve stock?

See this is why I don't think it would appear on the exam. In U3 you are taught that the creditors control account is only used to record purchases of stock from creditors. However in reality it is a control account for ALL creditors.

It would definitely be necessary however call the account "sundry creditor ... " in the subsidiary ledger.

Don't get hanged up about it too much, as I said 99% sure that this would not be asked in the exam paper as it is not mentioned in the study design.
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Yitzi_K

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Re: question
« Reply #4 on: June 05, 2010, 10:30:09 pm »
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This was in one of the practice exams, but I'm pretty sure it can't be in the exam, as it's unit 4.
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