Help with Task 1.6 (b) 4 dec 2007

JnClaude E CliffordJnClaude E Clifford Settling In NicelyPosts: 19Registered
Pass Paper Question: Tuesday 4th December 2007

Task: 1.6 (b)

I am having trouble understanding why the sale ledger control is used as entry in the Main Ledger. (Taken from model answer)

Main Ledger
Account name Amount Debit Credit
Sales Ledger Control 10,150 √
Sales Ledger Control 2,520 √
Sales Ledger Control 300 √
Discount allowed 300 √

Comments

  • garry_coombsgarry_coombs Well-Known Posts: 108Registered
    The Sales Ledger Control is used because they are a "credit customer".

    People who buy on credit from a business (usually regular customers) will have an account in the sales ledger, so any transactions involving a credit customer will go through the sales ledger (which is not part of the main ledger), any changes on the sales ledger has to be shown in the main ledger as a change on the sales ledger control.

    The balance of the sales ledger control should always be the total of the whole sales ledger balances.
  • A-VicA-Vic Expertise Guaranteed Posts: 6,970Registered
    Good answer couldn'r have put it better myself :001_tt2:
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