Some of the accounts in Theresa’s ledger are listed:

■ Sales account
■ Purchases account
■ The account of Abdul, a credit customer
■ The account of Bart, a credit supplier
■ Sales returns account
■ Purchase returns account
■ The account of Chel, a credit supplier
■ Cash sales account
■ The account of Dodd, a credit customer
■ Carriage inwards account.

Required

Identify the ledger in which the accounts would be found.

The bulk of all entries in the double-entry system are in the personal ledgers:

■ The sales ledger
■ The purchases ledger.

Because there are so many entries in these two ledgers, there is great potential for errors to be made. Control accounts are used to check the accuracy of the entries made in both the sales ledger and the purchase ledger.

Each month a control account is prepared for each ledger. In this way, errors can be identified as being in one particular ledger in the month that they have occurred.

The control account summarises all the individual entries that have been made in the sales ledgers and the purchase ledgers in any particular month. Any entry in any sales ledger or purchases ledger account will be duplicated in the control account.

If a business has a vast number of credit customers it may divide the sales ledger according to geographical areas, customers of particular sales persons, alphabetically, etc. The sales day book would reflect any divisions of the sales ledger.