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Hi Jools
In General Ledger you will have both the Sales Account and the Sales Ledger Control Account.
If you think of the monthly postings from the Sales Day Book:
(1) The individual entries (GROSS Amounts) are posted to the relevant individual accounts within Sales Ledger (Debit Side).
(2) The total of the NET column is posted to the Sales Account within the General Ledger (Credit Side)
(3) The total of VAT column is posted to the VAT Account within the General Ledger (Credit Side)
(4) The total of the GROSS column is posted to the Sales Ledger Control Account (Debit Side). This account is, therefore, a summary of the accounts in the Sales Ledger (1 above).
The totals of the Accounts within the General Ledger will balance, ie Sales Account Credit Total plus VAT Account Credit Total equals SLCA Debit Total.
Same principle applies for payments received from Customers (Debtors):
Debit Bank Account
Credit SLCA (General Ledger)
Credit Individual Account (Sales Ledger)
On creating a Trial Balance the SLCA total replaces Debtors total from Sales Ledger, as both are exactly the same.
Hope this makes it a wee bit clearer. I know it can be difficult to grasp at the beginning, we have all been there, but persevere and you will be an expert before you know it. If in doubt, give us a shout!
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