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.

Powerage Ltd

Multiple Choice

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