Chapter Eight- Double Entry for Sales and Trade Receivables

Question 1

Discounts Allowed Account

Answer 1

The account in the general ledger used to record prompt payment discounts taken by customers

Question 2

Posting

Answer 2

Transferring data from the books of prime entry (day books) into the ledgers

Question 3

Sales Ledger Control Account

Answer 3

A general ledger account for trade receivables (credit customers), representing the total of all the accounts in the sales ledger

Question 4

Sales Returns Account

Answer 4

The account in the general ledger that is used to record customer returns

Question 5

Subsidiary Ledgers

Answer 5

Sales and purchase ledgers that are not part of the general ledger and which contain a ledger account for each individual trade receivable or trade payable. Not part of the double entry system