Receivable Ledger

Question 1

Debit

Answer 1

Balance b/d
(at the start of the period)

Credit sales
(invoices from the sales journal)

Dishonoured cheque
(from the cash book)

Discount on dishonoured cheque
(if there was any)

Interest charged to receivable
(if there is any)

Total

Balance b/d
(at the start of the next period)

Question 2

Credit

Answer 2

Receipts from the customer
(from the cash book)

Discount allowed
(if there was any)

Sales returns (credit notes from the sales returns journal)

Contra with a payables ledger account

Balance c/d
(at the end of the period)

Question 3

How do you know when the customer is debited to the account?

Answer 3

Anything that increases the amount owed by the customer is debited to the account

Question 4

How do you know when the customer is credited to the account?

Answer 4

Anything that decreases the amount owed by the customer is credited to the account