VCE Accounting Unit 3. Video of this presentation can be found on my YouTube channel here https://www.youtube.com/channel/UCf5jyuJoYwie8tWfvjEc0zg.

1. 9.4 THE STOCK
CONTROL ACCOUNT

2. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
 Up to now we have recorded all movements in and out of stock have been
recorded in the Stock Ledger
 From now on all stock movements must be recorded in the Stock Control
Ledger
9.4 THE STOCK CONTROL ACCOUNT
Stock [A]
Date Details $ Date Details $
Stock Control [A]
Date Details $ Date Details $

3. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
 The Stock Control Ledger is an Asset and has the same rules of DEBITS and
CREDITS…
Stock Control [A]
9.4 THE STOCK CONTROL ACCOUNT

4. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
 Which transactions will increase and decrease the Stock Control Ledger…
Stock Control
Stock Control balance will  when…
Stock is purchased from suppliers
There is a stock gain
The owner contributes stock personally
Stock Control balance will  when…
Stock is sold to customers
There is a stock loss
The owner withdraws stock personally
Stock is donated for advertising purposes
9.4 THE STOCK CONTROL ACCOUNT

5. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
 What does a control account for stock mean? For debtors, using a Debtors Control
ledger meant…
 General Ledger: total balance of debtors was stored in the Debtors Control ledger
 Subsidiary Ledger: used to record the balance of each individual debtor
Debtors Control [A]
28/2 Sales/GST 4950
Debtors – M. Bennett [A]
1 /2 Sales/GST 2750
24/2 Sales/GST 220
Debtors – A. Griffith [A]
4/2 Sales/GST 1100
Debtors – R. Jones [A]
17/2 Sales/GST 440
27/2 Sales/GST 440
General Ledger Subsidiary Ledger
9.4 THE STOCK CONTROL ACCOUNT

6. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
 For stock, using a control account means that…
 General Ledger: the total balance of all stock is stored in the Stock Control ledger
 Stock Cards: the balance of each individual unit of stock is recorded in the
relevant Stock Card for each item
Stock Control [A]
1/5 Balance 15000
General Ledger
Stock Cards
Stock Card: Collingwood Scarves
Date Quantity Cost Balance
1/5 800 10 8000
Stock Card: Essendon Scarves
Date Quantity Cost Balance
1/5 500 10 5000
Stock Card: Carlton Scarves
Date Quantity Cost Balance
1/5 200 10 2000
Subsidiary Record
Cross-checking mechanism
9.4 THE STOCK CONTROL ACCOUNT

7. © Michael Allison, Trinity Grammar School. Author’s permission required for external use
TASK
In-class Homework
SQ5 X
SQ8 X
SQ9 X
Ex9.7 X