Entries reducing debtors in sales ledger control

Steps:

• Identify sales ledger control as the debtors control account, balancing total receivables.
• Note credit side records items decreasing net debtors, like payments or adjustments.
• Evaluate options: credits reduce debtors; debits increase them.
• Match set-off as a credit entry for mutual debts offset.

Why D is correct:

• Set-off nets mutual balances between buyer and seller, reducing debtor amount per accounting standards, credited to sales ledger control.

Why the others are wrong:

• A: Discount received from suppliers credits purchases ledger control, not sales.
• B: Dishonoured cheques reinstates debt, debited to sales ledger control.
• C: Interest on overdue accounts charges customers, debited to sales ledger control.

Final answer: D