All 25 Sales & Purchase Ledgers questions
More in Sales & Purchase Ledgers
What is the sales ledger? What is the purchases ledger? What is a debtor and a creditor? What is a statement of account sent to customers? Why are the sales and purchases ledgers called memorandum (subsidiary) ledgers? What documents update the sales and purchases ledgers? What is accounts receivable and accounts payable? What is a credit customer versus a cash customer? What is a purchase invoice checked against before posting? How is a customer's account in the sales ledger written up?
Advertisement
Back to results for “Control Accounts”
Bookkeeping › Sales & Purchase Ledgers

What is the difference between the sales ledger and the sales account?

Beginner

Answer

The sales account is a nominal (income) account in the general ledger recording total sales revenue. The sales ledger is a set of personal accounts, one per customer, tracking who owes what. Sales revenue hits the sales account; amounts owed by customers sit in the sales ledger, controlled by the receivables control account.
Real-world example Total revenue is credited to the sales account, while individual customer balances live in the sales ledger.

Common follow-ups: Which records revenue? | Which tracks individual customers?

Control Accounts Books of Prime Entry Sales & Purchase Ledgers
All 25 Sales & Purchase Ledgers questions