Sales ledger control account contains the total amount in respect of ________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option B
Explanation:
The sales ledger control account (also known as the debtors' control account) contains the total amount owed by customers (i.e., debtors) for credit sales. This account is a summary account that consolidates all the individual customer accounts in the sales ledger.
Role of the Sales Ledger Control Account:
- Debtors' Summary:
The sales ledger control account provides a summary of the amounts owed by all customers. This is different from individual customer accounts, which track specific amounts owed by each customer.
- Record of Credit Sales and Payments:
It includes transactions such as:
Credit sales made to customers.
Payments received from customers.
Returns or allowances (if applicable).
- Balance:
The balance of the sales ledger control account at any point in time shows the total amount owed by all debtors.
The sales ledger control account (also known as the debtors' control account) contains the total amount owed by customers (i.e., debtors) for credit sales. This account is a summary account that consolidates all the individual customer accounts in the sales ledger.
Role of the Sales Ledger Control Account:
- Debtors' Summary:
The sales ledger control account provides a summary of the amounts owed by all customers. This is different from individual customer accounts, which track specific amounts owed by each customer.
- Record of Credit Sales and Payments:
It includes transactions such as:
Credit sales made to customers.
Payments received from customers.
Returns or allowances (if applicable).
- Balance:
The balance of the sales ledger control account at any point in time shows the total amount owed by all debtors.