NK Designer In: Category - Accounting OthersIs sales ledger control account a debit or credit?creditdebitsales ledger control account ShareFacebook1 AnswerVotedRecent Vaishnavi 2020-08-12T06:59:21+05:30Added an answer on August 12, 2020 at 6:59 am This answer was edited. Sales Ledger Control Account is generally debited. It is debited if its balance increases & credited if its balance decreases.First, let me help you understand the meaning of the term Sales Ledger Control Account.Meaning of Sales Ledger Control AccountSales Ledger Control Account (SLCA) is a summarized ledger of all the trade debtors of the entity. This Control Account typically looks like a “T-Account” or a replica of an Individual Trade Receivable (Debtor) account. But instead of containing transactions of invoices, returns, and receipts, etc related to one debtor, it contains summarized transactions of invoices, returns, and receipts, etc related to all the debtors of the business.Sales Ledger Control Account is also referred to as “Trade Debtors Control Account”.The balance of SLCA should equal the sum of balances of the individual customer accounts. If discrepancies arise, then it should be investigated.Is Sales Ledger Control Account a debit or credit?Sales Ledger Control Account indicates the total amount owed to a business entity by all its customers at a particular point of time. Therefore, it is a “short-term asset” for the business entity and forms part of the balance sheet.As per Modern approach of accounting – Debit the increase in asset, Credit the decrease in asset.SLCA is an asset, therefore it is generally debited. It will be debited if its balance increases & credited if balance decreases. Also, it will generally show a debit balance.Example of Sales Ledger Control AccountSuppose following were during the year transactions with the Debtors Sugar Inc. & Chocolate Inc. along with the outstanding balance as at 31/12/20×2.ParticularsSugar Inc.Chocolate Inc.Opening balance140,000–Credit Sales250,000400,000Discount allowed10,00030,000Sales returns15,00010,000Payment received95,000120,000Bad Debts30,000–Interest charged on overdue amount–10,000Dishonoured cheques25,00020,000Outstanding balance as at 31/12/20×2265,000270,000Sales Ledger Control Account for the year 01/01/20×2 to 31/12/20×2 will be presented as follows-The balance of SLCA ie. 535,000 is equal to the sum of the balance of individual outstanding debtors ie. 265,000 + 270,000 = 535,000.You can see that the transactions which increase the balance of SLCA are debited & decrease the balance are credited. Also, it is depicting a debit balance.0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login or register to add a new answer.