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• # 116287
• Tue 13 Feb 2018 12:01 PM

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

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• # 116289
• Tue 13 Feb 2018 05:14 PM

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.

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• # 116302
• Thu 15 Feb 2018 04:50 PM

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

Edited at 15 Feb 2018 04:51 PM GMT

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• # 116823
• Thu 14 Jun 2018 02:58 PM

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 

• Cheers

  M

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