SALES LEDGER CONTROL ACCOUNT CONTAINS THE TOTAL AMOUNT IN RESPECT OF
- A. creditors
- B. debtors ✓
- C. investors
- D. shareholders
The answer to the question is: B. debtors
The sales ledger control account is a part of the double-entry bookkeeping system used by businesses to keep track of their accounts receivable. It contains the total amount owed to the business by its customers, also known as debtors.
The sales ledger control account is a nominal ledger account that summarizes the individual customer accounts in the sales ledger. It is used to monitor and control the amounts owed by customers, as well as to ensure that the individual customer accounts in the sales ledger are accurate and complete. The balance on the sales ledger control account represents the total amount of accounts receivable owed to the business by its customers.
The sales ledger control account is an important tool for businesses to manage their accounts receivable and monitor the creditworthiness of their customers. By reconciling the individual customer accounts with the sales ledger control account, businesses can ensure that all transactions are accurately recorded and that any discrepancies or errors are promptly identified and rectified.
In conclusion, the sales ledger control account contains the total amount owed to the business by its customers, or debtors.