Which item is normally recorded on the credit side of the sales ledger control account?
Correct answer: B. Sales returns
- A. Credit sales
- B. Sales returns
- C. Opening balance of trade receivables
- D. Interest charged to customers
Explanation
Sales returns reduce the amount owed by customers, so they are credited to the sales ledger control account. Credit sales and the opening receivables balance are normally recorded on its debit side.
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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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