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:

Memory System

The structures and processes involved in the storage and retrieval of information in the brain.

Neurogenesis

The process by which new neurons are formed in the brain, contributing to brain plasticity and repair.

Neural Pathways

Networks of neurons in the brain that work together to enable a specific function, such as thought, speech, or motor coordination.

Dentate Gyrus

A key region of the hippocampus involved in memory formation and spatial navigation.