In preparing a Sales Ledger Control Account, which of the following entries would appear on the CREDIT side?
ACredit sales for the period
BDishonoured cheques from debtors
CDiscount allowed to debtorsCORRECT
DInterest charged on overdue accounts
GCEFinancial AccountingControl Accounts2021
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Why the answer is C, and why the others tempt you.
Discount allowed to debtors reduces the amount owed by customers and is therefore credited in the Sales Ledger Control Account. Credit sales, dishonoured cheques, and interest charged on overdue accounts all increase the amount owed by debtors, so they appear on the debit side of the account.
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