A bad debt written off from a customer's account is recorded on which side of the sales ledger control account?
Correct answer: B. Credit side
- A. Debit side
- B. Credit side
- C. Both sides equally
- D. It is excluded from the control account
Explanation
Writing off a bad debt reduces the amount due from customers, so it is credited to the sales ledger control account. It is not treated as a new expense entry in the control account itself.
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About Bank Reconciliation and Control Accounts
Bank reconciliation explains differences between the cash book and bank statement through unpresented cheques, outstanding deposits, bank charges, direct payments, credited amounts and recording errors. Control accounts summarise receivables and payables ledgers, and their balances are reconciled with individual accounts to locate discrepancies.
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