Sales ledger control account balance at end of July: 20,000. During August: Credit sales 150,000; Receipts from customers 135,000; Returned (dishonoured) cheques 5,000; Returns inwards 11,000. What was the closing balance?

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SSC Financial and Cost Accounting P-1 QUESTION #6109

Question 1

Sales ledger control account balance at end of July: $20,000. During August: Credit sales $150,000; Receipts from customers $135,000; Returned (dishonoured) cheques $5,000; Returns inwards $11,000. What was the closing balance?

$11,000
$19,000
$29,000✔️
$30,000

Correct Answer Explanation

Option C ($29,000) is correct.

Opening $20,000 + Credit sales $150,000 + Returned cheques $5,000 − Receipts $135,000 − Returns inwards $11,000 = $29,000

Dishonoured cheques are added back as the debt is reinstated.

More Options