Cash Hash » Cash Hash » Money Cash » Sales ledger control account confusion?

  #1 (permalink)
: I question which involves putting debits and credits into the sales ledger contron account? I know what a sales ledger control account is basically but get a bit confused when it involves putting debits and cedits into it ie is when it is says 'is money received from credit customers'? Can someone explain this to me please

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  #2 (permalink)
: Looking at the information you've given, I'm not so sure you do know what a controlling account is. The sales ledger is a special journal that is subsidiary to the "controlling account" which is kept in the general ledger. As far as your question about "'is money received from credit customers".
The sales ledger is only used for recording sales made on account (credit sales). So the money received from a customer paying on account would not go there. Instead it would go into the cash receipts journal (ledger), which is also a subsidiary ledger. At the end of each day these subsidiary ledgers are totaled up and their totals are then put into their respective controlling accounts in the general ledger.
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