For a Small Company,making a Small Number of Sales,all the Transactions

question 15

Multiple Choice

For a small company,making a small number of sales,all the transactions are recorded in one main ledger.However,as a business grows,it may introduce a "subsidiary ledger" known as the Sales Ledger.Within the Sales Ledger,the individual sales transactions are recorded in personal accounts.The totals are recorded in a "Sales ledger Control" account.
Suppose a company with a subsidiary ledger makes the following sales:
$$\begin{array} { l l } \text { B. Bug } & £ 100 \\\text { M. Moth } & £ 250 \\\text { Worm Ltd } & £ 150\end{array}$$
Which of the following is the correct treatment?

• A) Debit Sales with the individual amounts. Credit Sales ledger Control with the total amounts. Also Debit the individual customer accounts in the Sales ledger itself.
• B) Credit Sales with the individual amounts. Credit Sales ledger Control with the individual amounts. Also Debit the individual customer accounts in the Sales ledger itself.
• C) Credit Sales with the total amount, £500. Credit Sales ledger Control with the individual amounts. Also Debit the individual customer accounts in the Sales ledger itself.
• D) Credit Sales with the total amount, £500. Debit Sales Ledger Control with the total amount, £500. Also make debit entries of the individual amounts in the personal accounts in the Sales Ledger.

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Definitions:

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