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JAMB Principles of Accounts 2005 Question 23

Question 23

Control Accounts

Which of the following items is found on the credit side of the sales ledger control account?

  1. A.Discount received
  2. B.Dishonoured cheques
  3. C.Credit sales
  4. D.Bills receivable
Show the answer and explanation

Answer: D (Bills receivable)

Explanation

Bills receivable accepted from debtors reduce what they owe, so they are credited. Credit sales and dishonoured cheques are debits; discount received belongs to the purchases ledger.