Which transaction is normally excluded from a sales ledger control account because it does not involve credit customers?
Correct answer: B. Cash sales made by the business
- A. Credit sales to customers
- B. Cash sales made by the business
- C. Receipts from credit customers
- D. Bad debts written off
Explanation
The sales ledger control account summarises transactions with credit customers whose individual accounts are kept in the sales ledger. Cash sales do not create customer account balances and are therefore recorded outside this control account.
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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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