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
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