Essential Sources for Sales Ledger Control Account

Steps:

• Identify the purpose: The sales ledger control account summarizes total trade receivables, requiring inputs for credit sales, cash receipts, and adjustments.
• List standard sources: Credit sales from the sales day book (1), cash receipts from the cash book (2), and returns/discounts from the returns inward journal or cash book (3).
• Verify completeness: All three ensure the account balances by debiting increases and crediting decreases in receivables.
• Confirm requirement: Without any one, the account cannot accurately reflect the total position.

Why A is correct:

• Per double-entry bookkeeping principles, the control account mandates all three sources to post total credit sales (debit), receipts (credit), and contra entries like returns (credit) for reconciliation.

Why the others are wrong:

• B omits source 3, ignoring adjustments like returns that reduce receivables.
• C excludes source 1, missing the primary debit for credit sales.
• D uses only source 3, providing incomplete data without sales or receipts.

Final answer: A