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Dear Sir/ Madam,
I do not know how to get both sides of closing accounts ($182 DR side and $973 CR side) on sales ledger control account. Kindly refer the following example and please let me know. Thanks.
Sales Ledger Control Account
$ $
Debit balances b/d 70 Credit balances b/d 30
Credit Sales 1600 Return Inwards 65
Dishonoured chqs 5 Cash received 230
Bad debt recovered 3 Bad debts 2
Interest on Debt 10 Bank 570
Cash Refunded 130 Discount allowed 30
Credit balances c/d 182 Set off:Pur ledger 100
Debit balance c/d 973
2000 2000Dear Sir/ Madam,
When I post my question, my T account change into line. I’m sorry.
In future, you must ask in the Ask the Tutor Forum if you wish for me to answer. This forum is for students to help each other 🙂
If you have watched my free lectures on double entry bookkeeping, you will know that we always carry balances down to the opposite side of the t-account.
So to end up with a credit balance of 182, we need to carry 182 down from the debit side, and to end up with a debit balance of 973 we need to carry 973 down from the credit side.I do suggest that you watch the free lectures on closing off the accounts (and on control accounts). The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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