The sales ledger control account has an opening balance of KSh 140,000. Credit sales were KSh 600,000, cash received KSh 520,000 and sales returns KSh 20,000. What is the closing balance?
Answer and explanation
Correct answer: A. KSh 200,000
- Step 1: Closing balance = opening balance + credit sales - cash received - returns. Step 2. = 140,000 + 600,000 - 520,000 - 20,000 = KSh 200,000. Answer: KSh 200,000. Why not the others: KSh 220,000: That leaves out the sales returns. KSh 180,000: That subtracts the returns twice. KSh 1,280,000: That adds every figure instead of subtracting the cash and returns.
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