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dear mike
what is the reference for entering a credit closing balance of sales ledger control account?
for example, sales ledgers show an account has 2000 credit balance at the end of the month, how it will record as c/d in the credit side of the control account?Mike does not teach F3 for us!
If there is a credit balance at the end of the year on the control account, then it will appear on the debit side of the account (before the totals) to be carried down to the credit side (below the totals) – exactly as normal when closing off accounts.
I do suggest that you watch my free lectures – the lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
sorry, john,
my question is how do we identify that there is a credit balance at the end of the year?
for example
sales is entered in the control account by reference to sales day book total
likewise what is the reference to the closing credit balanceThe sales ledger control will normally have a debit balance, because it is receivables.
However it would be that they have (say) twenty customers who owe a total of $20,000, but also one customer who has overpaid and so is owed back $100.
In that case, the net receivables will be 19,900, but it would be better to show a debit balance of 20,000 and a credit balance of 100.
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