Joomla TemplatesBest Web HostingBest Joomla Hosting
Home Control Accounts Credit Balance in Sales Ledger Control Account

Articles

Credit Balance in Sales Ledger Control Account

Sales ledger usually has opening and closing debit balances. However, a credit balance can sometimes be found in the sales ledger. It occurs when a customer returns some goods after having paid fully for the sale. This will put on a credit balance in the customer’s account.

 

Journal entry

Date Accounts Folio Debit Credit
$ $
20X1
Jan 29 Returns inwards 100
G Grumpy 100
(Goods returned - wrong type)


Sales Ledger

G Grumpy Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X1 20X1
Jan 01 Balance b/d 450 Jan 25 Bank 1,700
"   20 Sales 1,250 "   29 Returns inwards 100
"   31 Balance c/d 100
1,800 1,800
20X1
Feb 01 Balance b/d 100


General Ledger

Sales Ledger Control Account

Date Particulars Folio Amount Date Particulars Folio Amount
$ $
20X1 20X1
Jan 01 Balance b/d 5,830 Jan 31
Cash 3,620
Jan 31
Sales 8,450 "
Bank
4.360
"  
Dishonoured chq
120 " Bad debts 220
"  
Balance c/d 100 " Discounts allowed 340
" Returned inwards 460
" Balance c/d 5,500
14,500 14,500
20X1 20X1
Feb 01 Balance b/d 5,500 Feb 01 Balance b/d 100



Last Updated (Friday, 03 September 2010 19:53)