Credit Balance In Debtors Control Ledger Account
Negative Balance In Accounts Receivable Control Ledger Account / Debtors Control Ledger Account It may happe n t hat a De btor Control Ledger Account or Accounts Receivable Control Ledger Accoun t s hows a credit b ala nce b ut usually it is not t he case. Usually, it shows debit balance as it shows the amount to be collected from all customers for goods or merchandise sold on account or credit by the company. Actually, due to some reaso ns suc h as adva nces from customers or wrong information entered, etc., t he negative or unusual b ala nce (Credit Bala nce) of Deb tor Co ntrol Ledger account is recorded . Eac h i ndividual Deb tors Subledgers or Subsidiary Ledger Accounts are prepared for eac h customers so that the sum of closi ng b ala nces of deb tors su b sidiary ledger accou nts is finally transferred to one master ledger t hat is de b tor co ntrol ledger account. Example: Suppose a Company XYZ sold goods to its 5 customers. T he e nding b ala nces...