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Difficulty: MediumSales Ledger Control Account

The following details were extracted from the accounting records of Zainab Trading Store for the year ended 31st December 2025:

- Opening debtors balance (1st January 2025): ₦45,000\text{₦}45,000
- Credit sales for the year: ₦185,000\text{₦}185,000
- Cash and cheque received from debtors: ₦142,000\text{₦}142,000
- Dishonoured cheques from debtors: ₦3,500\text{₦}3,500
- Discount allowed to trade debtors: ₦4,800\text{₦}4,800
- Bad debts written off: ₦2,500\text{₦}2,500
- Returns inwards: ₦6,200\text{₦}6,200
- Set-off against purchases ledger (contra entry): ₦3,000\text{₦}3,000
- Cash refunded to debtors for overpayment: ₦1,500\text{₦}1,500

What is the closing debit balance of the Sales Ledger Control Account as at 31st December 2025?

Answer: 76500 ₦

Answer

The closing debit balance of the Sales Ledger Control Account as at 31st December 2025 is ₦76,500\text{₦}76,500.
To find the closing debit balance of the Sales Ledger Control Account, sum all debit entries (Opening Balance ₦45,000\text{₦}45,000 + Credit Sales ₦185,000\text{₦}185,000 + Dishonoured Cheques ₦3,500\text{₦}3,500 + Cash Refunds ₦1,500\text{₦}1,500 = ₦235,000\text{₦}235,000) and subtract all credit entries (Cash Received ₦142,000\text{₦}142,000 + Discount Allowed ₦4,800\text{₦}4,800 + Bad Debts ₦2,500\text{₦}2,500 + Returns Inwards ₦6,200\text{₦}6,200 + Contra Entry ₦3,000\text{₦}3,000 = ₦158,500\text{₦}158,500). This gives ₦235,000−₦158,500=₦76,500\text{₦}235,000 - \text{₦}158,500 = \text{₦}76,500.

Step-by-Step Solution

1
Calculate the total of the debit side entries
Total Debits = ₦45,000+₦185,000+₦3,500+₦1,500=��235,000\text{₦}45,000 + \text{₦}185,000 + \text{₦}3,500 + \text{₦}1,500 = \text{��}235,000
Opening debtors balance, credit sales, dishonoured cheques, and refunds to debtors increase the total debt owed by debtors and are placed on the debit side.
2
Calculate the total of the credit side entries
Total Credits = ₦142,000+₦4,800+₦2,500+₦6,200+₦3,000=₦158,500\text{₦}142,000 + \text{₦}4,800 + \text{₦}2,500 + \text{₦}6,200 + \text{₦}3,000 = \text{₦}158,500
Payments received, discounts allowed, bad debts, sales returns, and set-off entries reduce the total debt owed by debtors and are placed on the credit side.
3
Subtract total credit items from total debit items to find the closing balance
Closing Debtors Balance = ₦235,000−₦158,500=₦76,500\text{₦}235,000 - \text{₦}158,500 = \text{₦}76,500
The balancing figure on the credit side represents the closing debit balance brought down for the next accounting period.

Key Concept

Sales Ledger Control Account Balancing
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Topics

Sales Ledger Control Account

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