Control Accounts
Kimmy10
Registered Posts: 10
I'm a bit confused from a handout we were given to help us work on double entry. My tutor has put credit sales in the debit column of the bank account. Firstly, I didn't think credit sales went through the bank account, or have I got that wrong? And secondly that would mean to be opposite to the bank, the credit sales (from the individual sales ledgers) would show as a credit in the SLCA.
Shouldn't credit sales go on the debit side? And when we transfer from the individual sales ledgers, do we put the summary amount on the same side in the SLCA? So a debit transfers to the SLCA as a debit?
Shouldn't credit sales go on the debit side? And when we transfer from the individual sales ledgers, do we put the summary amount on the same side in the SLCA? So a debit transfers to the SLCA as a debit?
1
Comments
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Make a sale: dr SLCA (and individual sales ledger, but this isn't part of the double-entry), cr sales.
Receive payment: dr bank, cr SLCA (and individual sales ledger).
Thus the end position on the SLCA is as before you did anything (the dr and cr contra out) - as you have made a sale AND received payment, you are not owed anything, therefore there is no receivable asset to recognise. Instead you have the asset of cash in the bank.0 -
thank you, again!0
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