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Trial Balance Corrections

  • Affiliate
  • 18 posts
  • # 116287

Working through my level 3 and I'm drafting a trial balance.

My question is the Sales Account is income so goes on the Credit Side

and Sales ledger control account is money owed but classed as an asset so goes on the debit side.

Have I got this correct?

Thanks

  • Student
  • 45 posts
  • # 116289

PaulW said:

Working through my level 3 and I'm drafting a trial balance.

My question is the Sales Account is income so goes on the Credit Side

and Sales ledger control account is money owed but classed as an asset so goes on the debit side.

Have I got this correct?

Thanks


 Seems correct to me. The Purchase ledger would then be on the Credit side.

  • Fellow PM.Dip
  • Practice Licence
  • 26 posts
  • # 116302

Yes - but is money owed in to you rather than owed out

Edited at 15 Feb 2018 04:51 PM GMT

  • Affiliate
  • 7 posts
  • # 116823

PaulW said:

Working through my level 3 and I'm drafting a trial balance.

My question is the Sales Account is income so goes on the Credit Side

and Sales ledger control account is money owed but classed as an asset so goes on the debit side.

Have I got this correct?

Thanks


 Absolutely correct.  Actual sales are credits in the P&L - credits in the P&L = income, debits in the P&L = expenses.

The sales ledger is in the balance sheet, where (less confusingly) the values are the right way around e.g. positive values = money coming in/assets, negative values = money going out/liabilities.  In the case of sales you are crediting your P&L and debiting your balance sheet.

 

Hope that helps Smile

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