A Level Accounting (9706)•9706/13/M/J/24

Explanation
Balances in Sales Ledger Control Account Steps:
- Recognize the sales ledger control account tracks customer transactions, with debit balances for receivables and credit balances for payables.
- Note that a closing balance on the debit side indicates net receivables after all entries.
- Determine that carrying down the debit closing balance preserves the net amount owed by customers into the next period.
- Identify that an opening balance brought down on the credit side reflects net payables to customers at period start.
Why C is correct:
- In the sales ledger control account, a debit balance (closing carried down) represents amounts owing from customers per standard double-entry accounting principles, while a credit balance (opening brought down) represents amounts owing to customers.
Why the others are wrong:
- A: Assumes both represent owing from customers, but credit-side opening indicates owing to customers.
- B: Claims debit closing as owing to customers, but debit balances show receivables from customers.
- D: Suggests both as owing to customers, but debit closing shows owing from customers.
Final answer: C
Topic: Reconciliation and verification
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