A Level Accounting (9706)•9706/13/M/J/23
Explanation
Entries in the Sales Ledger Control Account
Steps:
- Identify the sales ledger control account as the total of individual debtors' balances in the sales ledger.
- Debit sales to increase total debtors, confirming statement 1.
- Credit discounts allowed to reduce total debtors owed, confirming statement 2.
- Credit allowance for irrecoverable debts to provision for potential losses, reducing net debtors, confirming statement 3.
Why D is correct:
- The sales ledger control account, per double-entry bookkeeping principles, debits increases in receivables (sales) and credits decreases (discounts allowed and bad debt provisions).
Why the others are wrong:
- A excludes the valid credit for irrecoverable debt allowance.
- B excludes the valid credit for discounts allowed.
- C excludes the valid debit for all sales.
Final answer: D
Topic: The accounting system
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