Verification of Records

Unusual Balances in Control Accounts

What Is an Unusual Balance?

In normal trading, the SLCA has a debit closing balance (customers owe the business money) and the PLCA has a credit closing balance (the business owes money to suppliers). An unusual balance is when the opposite arises.

How Unusual Balances Arise

CR balance in the SLCA — customer has overpaid:

• A customer pays more than the invoice amount (e.g. a duplicate payment, or a credit note not deducted before payment)
• Cash received from the customer exceeds credit sales, pushing the customer's individual account into credit
• In the SLCA, the credit entries (receipts) exceed the debit entries (sales) for that customer

DR balance in the PLCA — business has overpaid a supplier:

• The business pays a supplier more than the amount owed (e.g. a processing error or payment made before a purchase return is credited)
• In the PLCA, the debit entries (payments) exceed the credit entries (purchases) for that supplier

How Unusual Balances Are Shown in the Trial Balance

Unusual balances must appear on the opposite side to the normal balance in the trial balance — they cannot be netted off.

Key rule: Do not add unusual balances to the normal side and net them off. Show them separately so the trial balance reflects the correct financial position.

Worked Example

Harwood Supplies' PLCA shows the following at 31 March:

DR total = 86,400; CR total = 84,800 → DR exceeds CR by £1,600

The PLCA has a debit closing balance of £1,600 — an unusual balance, meaning the business has overpaid its suppliers in aggregate. This appears as a current asset (debit) in the trial balance, not as a trade payable.

Treatment in the Financial Statements

• An unusual SLCA balance is a current liability (refund due to the customer)
• An unusual PLCA balance is a current asset (refund due from the supplier)
• Neither is listed under trade receivables or trade payables — they must be shown separately

Exam tip: If the question gives a SLCA or PLCA with more entries on one side than expected, check carefully whether a closing debit or credit balance results. If it is the opposite to normal, it is an unusual balance — state what it means and where it goes in the trial balance.