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Many thanks. Yes I do use your lecures and find them very helpful. If I understand correctly are you saying that when there are credit entries in the receivables account or vice versa in the payables account, we would not just carry forward a reduced receivables balance but rather both a debit and credit balance?
Sir, I have a question from Kaplan study text giving opening balances of receivables and payables control accounts and various transactions throughout the month, I am also given closing ledger (memorandum) balances with a Cr balance for receivables and a Dr balance for payables, Dr and Cr balances on ledger (memorandum) accounts are “to be calculated”. I am asked to determine closing debit and credit balances for both control accounts. The answer gives both a Dr and Cr closing balance for each account. My understanding is that every account only ever has one closing balance, Dr or Cr, not both. Please could you shed some light on this?