Sales Ledger

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hello

I am really confused by the Sales Ledger Control account, i know that this is like a mirror of the Subsidary accounts i.e the Debtor individual accounts, but i am confued because the balance b/d should be a DR in the Sales Ledger account, and CR in the Sales a/c and VAT a/c, and DR in the individual accounts, but the way i have been told, if you receive sales, you DR the bank, and CR individual accounts, so why is the balance b/d on the DR side of the individual accounts and the Sales Ledger Control? sorry if this is too much to take in, but i am really confused, because with every question i answer i always refer back to the bank,

i.e

DR - BANK
CR - Sales a/c and individual accounts???

can you explain why this is? sorry if this is confusing you, its confusing me too :(

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    Not too sure what you are thinking but:

    Debtors Control - Dr (The money you are waiting to receive from your debtors is an asset to the business)

    Dr Bank
    Cr Sales Control

    The debtors control would show the credit being the money received, to reduce the asset of the balance outstanding against the debtor (subsidary)

    Does that make any sense?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    Hi

    Thanks for your reply, sorry to confuse you!!
    I had a question where i had to enter the balance b/d amounts into SLC, Sales, VAT, and a load of others........... but i was unsure of where to put the balance b/d? i checked back though some work in class we did and i put the following:

    Sales ledger control - DR
    Sales a/c - CR
    VAT - CR
    Subsidairy - DR

    Is this correct? because my trial balance worked out you see, so i now know where to put the balance b/d but i am unsure as to WHY i put them there? i would of thought the balance b/d in the subsidary (sorry can't spell that word, ha ha) accounts would be a CR?

    :|
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    Yes that looks fine, the debtors control would be adjusted to consider the sales received, bringing down the dr balance still outstanding. The sales cr fig would be carried forward to income statement, and obviously VAT speaks for itself.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    so what i have done is correct? the balance b/d

    SLC - DR
    Sales - CR
    VAT - CR
    Sub a/c - DR

    But if i got asked a question like:

    sold £100 to J Baker i would:

    DR - £100 in bank
    CR - J Baker

    this is whats confusing me because i always thought i would CR Sub accounts????

    Does it depend on the question then?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    Hi Diane.

    The subsidiary accounts are memo accounts and do not form part of the double entry.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    ooohhhhhh!!!!!!

    thats where i have been going wrong then!!! ha ha!!

    so its the sales account you CR for any sales you get, and the individual is just there hiding in the background?

    so sorry, i am hard work i know :o)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    That's okay Diane - that's what the forums are for!!

    You would enter each individual sale into the subsid a/c, then post the totals to the Sales / Purchases a/c.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Sales Ledger

    Great, thank you so much!!

    i will prob forget and come on here and ask the same question next week, ha ha, not really!!

    thanks again, this site is very helpful to people like me!!!

    cheers :thumbup:

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