All 25 Sales & Purchase Ledgers questions
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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 supplier's account in the purchases ledger written up? What is a contra between the sales and purchases ledgers (set-off)? How do you deal with a credit balance in the sales ledger? What is an aged receivables (debtors) analysis and why is it used? How is a refund to a customer or from a supplier recorded? How is an early-settlement discount received from a supplier recorded?
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How is a customer's account in the sales ledger written up?

Intermediate

Answer

Debit the customer with invoices (from the sales day book). Credit them with sales returns (credit notes), cash/cheques received, discounts allowed, and any bad debt written off. The balance (usually a debit) shows how much they still owe. Entries come from the day books and cash book.
Customer account:
  Dr Invoices 1,200
  Cr Receipt 1,000, Discount allowed 20, Return 60
  Balance c/d 120 (still owed)
Real-world example A customer's account is debited for a new invoice and credited when they pay or return goods.

Common follow-ups: What is credited to a customer account? | What does a debit balance mean?

Control Accounts Cash Book & Petty Cash Sales & Purchase Ledgers
All 25 Sales & Purchase Ledgers questions