Saturday, January 16, 2010

Why is it a debit entry in Sales Ledger Control when u move debtors with credit balance to Purchases Ledger C?

I don't understand the reason why this would be a debit balance...





If anyone could explain please heh. Why is it a debit entry in Sales Ledger Control when u move debtors with credit balance to Purchases Ledger C?
Well, these debtors have credit balances. To make their balances zero in the sales ledger, you have to debit them. If you credit them, you'd make the credit balances even bigger. So that's why when you move debtors with credit balances, you


Dr Sales Ledger control


Cr Purchases Ledger control

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