Control accounts draw from books of prime entry, not subsidiary ledgers

Steps:

• Define control accounts as summary ledgers (e.g., debtors control) that aggregate subsidiary ledger details.
• Identify sources as books of original entry: cash book, journals for transactions like sales, purchases, adjustments.
• Recognize subsidiary ledgers (e.g., sales ledger) receive postings from these sources, not vice versa.
• Conclude sales ledger provides details for reconciliation, not initial entries to control accounts.

Why D is correct:

• Sales ledger holds individual debtor accounts posted from journals/cash book; control accounts are updated directly from those prime entry sources, per double-entry bookkeeping principles.

Why the others are wrong:

• A. Cash book records cash inflows/outflows (e.g., debtor payments) directly feeding debtors/creditors control accounts.
• B. General journal captures non-routine entries (e.g., bad debts) affecting control accounts.
• C. Purchases journal logs credit purchases, providing data for creditors control account entries.

Final answer: D