ZIMSEC O Level Principles of Accounts Notes: Sales Control Account Example


Prepare a sales ledger control account from the following information for October 20X6, carrying down the balance at 31 October:

  • Oct 1 Sales ledger balances $28,409
  • Oct 31 Sales journal $26,617
  • Bad debts written off $342
  • Cheques received from debtors $24,293
  • Discounts allowed $416
  • Cheques dishonoured $120
  • Returns inwards $924
  • Set-offs against balances in purchases ledger $319
Sales Ledger Control Account
1 OctoberBalance b/d2840931 OctoberBad Debts342
31 OctoberSales2661731 OctoberBank24293
31 OctoberDishonored Cheques12031 OctoberDiscount Allowed416
31 OctoberSales Returns924
31 OctoberSet Off319
31 OctoberBalance c/d28852



  • There are a number of items that merit discussion
  • Dishonoured cheques are cheques that are received from customers but for some reason the customer’s bank refuses to honour them i.e. no payment is received
  • When a cheque is received the payment is immediately recorded in the customer’s account and the cash book
  • This entry has to be reversed to show that payment is still owing due to the turn in events
  • This is done by debiting the customer’s account and in this case the Sales Control Account with the amount of the dishonored cheque
  • If there is interest on outstanding debts it is added to the debit side

To access more topics go to the Principles of Accounting Notes.