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JAMB Principles of Accounts 2012 Question 23

Question 23

Control Accounts

In sales ledger control account, returns inwards is usually

  1. A.debited and debtors credited
  2. B.credited and sales returns debited
  3. C.debited and cash credited
  4. D.credited and bank credited.
Show the answer and explanation

Answer: B (credited and sales returns debited)

Explanation

Returns inwards reduce what debtors owe, so they are credited in the sales ledger control (sales returns account debited).