Adjusting sales ledger control for omitted interest and discount

Steps:

• Start with given debit balance of $2000 in sales ledger control account (total debtors).
• Add omitted interest of $40, as it increases debtors' balance (debit side).
• Subtract omitted discount allowed of $150, as it reduces debtors' balance (credit side).
• Calculate corrected balance: $2000 +$40 - $150 =$1890.

Why B is correct:

• Sales ledger control account reflects net debtors; interest receivable adds to debits, while discount allowed subtracts per double-entry rules.

Why the others are wrong:

• A subtracts only discount, ignoring interest addition.
• C subtracts both from balance, treating interest as a reduction.
• D subtracts both and an extra $20, misapplying adjustments.

Final answer: B