Question on: JAMB Accounting - 2022

Which of the following is a debit item in the sales ledger control account

A

Cheque reciepts

B

Dishonoured cheques

C

Discount allowed

D

Bills recievable

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Correct Option: B

In accounting, a sales ledger control account is used to track and summarize transactions related to accounts receivable. Debit and credit entries in this account depend on the nature of the transaction.

- Cheque receipts and Bills receivable are typically credit items as they represent inflows of cash or promises to pay in the future.
- Discount allowed is also a credit item, as it represents a reduction in the amount owed by a customer.

On the other hand, Dishonoured cheques are considered a debit item. When a customer's cheque is dishonoured, it means the payment is not accepted, resulting in a decrease in the amount owed by the customer. Therefore, it is a debit item in the sales ledger control account.

Hence, Dishonoured cheques is the correct answer.

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