Which book of prime entry normally provides the total of credit sales posted to the sales ledger control account?
Correct answer: B. Sales day book
- A. Purchases day book
- B. Sales day book
- C. Cash book
- D. General journal
Explanation
Credit sales are first recorded in the sales day book, and its total is posted to the sales ledger control account. Cash sales are recorded through the cash book instead.
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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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