Why is "Including cash sales in the control account" a common mistake in Sales Ledger Control Accounts?

Why it happens: Treating all sales the same. How to avoid it: Only CREDIT sales pass through receivables. Cash sales never enter the sales ledger control account. Source: 9706 Examiner Reports

Why is "Putting a dishonoured cheque on the credit side" a common mistake in Sales Ledger Control Accounts?

Why it happens: Associating cheques with receipts. How to avoid it: A dishonoured cheque REINSTATES the debt, so it is a DEBIT in the control account. Source: 9706 Examiner Reports

Why is "Putting a contra on the debit side" a common mistake in Sales Ledger Control Accounts?

Why it happens: Confusing it with sales. How to avoid it: A contra REDUCES the receivable (set off against a payable), so it is a CREDIT in the sales ledger control account. Source: 9706 Examiner Reports

Why is "Omitting discounts, returns, irrecoverable debts or contra" a common mistake in Sales Ledger Control Accounts?

Why it happens: Focusing only on sales and receipts. How to avoid it: Include ALL items that change receivables, or the balance/missing figure will be wrong. Source: 9706 Examiner Reports

Why is "Believing agreement guarantees an error-free ledger" a common mistake in Sales Ledger Control Accounts?

Why it happens: The totals match. How to avoid it: Errors that don't change the total (e.g. wrong customer) leave the control agreeing; it gives reasonable, not absolute, assurance. Source: 9706 Examiner Reports

Why is "Ignoring customers with credit balances" a common mistake in Sales Ledger Control Accounts?

Why it happens: Assuming all receivables are debit balances. How to avoid it: Show opening/closing credit balances on the opposite sides (e.g. an overpayment is a credit balance). Source: 9706 Examiner Reports

Cambridge International A Levels Accounting (9706)

Sales Ledger Control Accounts

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Detailed Study Notes

Detailed notes on Reconciliation and Verification for Cambridge International A Levels Accounting, covering key concepts, explanations, examples, and exam-focused revision points.

Sales Ledger Control Accounts — Cambridge AS & A Level Accounting 9706 Study Notes (2026-2028)

The summary account that checks the whole receivables ledger. Learn exactly what goes on each side of the sales ledger control account, why its balance should equal the total of the customers' accounts, how to find a missing figure, and the benefits and limitations of control accounts.

At a glance

The sales ledger control account (SLCA) summarises all the credit customers' accounts (receivables).
Its balance should equal the total of the individual balances in the sales ledger.
Debit: opening balance, credit sales, dishonoured cheques, interest charged to customers.
Credit: receipts, discount allowed, sales returns, irrecoverable debts, contra (set-off), closing balance.
Built from the books of prime entry totals, independently of the individual accounts.
Purpose: check the ledger, localise errors, give a quick total of receivables, deter fraud.
A missing figure (e.g. credit sales) is found as the balancing figure.

What you’ll learn

Mapped to the Cambridge International A Level 9706 syllabus (2026-2028).

1.4.4 — Understand entries in control accounts.
1.4.4 — Prepare sales ledger control accounts.
1.4.4 — Understand the effects on financial statements of the correction of errors, and the benefits and limitations of control accounts.

What goes on each side

Debit = increases in receivables; credit = decreases in receivables.

The sales ledger control account mirrors all the customers' personal accounts in one summary account. Entries come from the books of prime entry totals (not the individual accounts), giving an independent check.

Debit (increase receivables)	Credit (decrease receivables)
Balance b/d (opening receivables)	Cash/bank received from customers
Credit sales (sales journal total)	Discount allowed
Dishonoured cheques	Sales returns (returns inwards)
Interest charged to customers	Irrecoverable debts written off
Refunds to customers	Contra (set-off with purchases ledger)
	Balance c/d (closing receivables)

Two quick checks:

Cash sales are NOT included — only credit sales pass through receivables.
A dishonoured cheque is a debit (it reinstates the debt); a contra is a credit (it reduces the receivable).

Debit: opening balance, credit sales, dishonoured cheques, interest charged.
Credit: receipts, discount allowed, sales returns, irrecoverable debts, contra, closing balance.
Built from books of prime entry totals (independent check).
Cash sales are excluded; only credit sales appear.

See the full worked example for sales ledger control accounts →

Why control accounts are prepared

To check a whole ledger, localise errors, total receivables and deter fraud.

The control account is a powerful reconciliation and verification tool:

Checks the accuracy of the sales ledger: the control balance should equal the total of the individual customer balances. If they disagree, there is an error in that ledger.
Localises errors: a disagreement points to the sales ledger specifically, narrowing the search instead of re-checking the whole books.
Gives a quick total of trade receivables for the financial statements, without adding up every account.
Deters and helps detect fraud: because the control account is built from independent totals (often by a different person), it makes it harder for someone to hide a manipulated customer account (segregation of duties).

Control balance should equal the total of the individual customer balances.
A disagreement localises the error to the sales ledger.
Gives a quick receivables total for the financial statements.
Independent totals help deter and detect fraud.

Finding a missing figure

Enter everything you know; the balancing figure is the unknown.

Like any reconstructed account, the control account can be used to find a missing figure — most often credit sales or the closing receivables.

Method: enter all the known items on the correct sides, then the balancing figure is the unknown.

Example — find credit sales:

Dr	$	Cr	$
Balance b/d	12 000	Bank	80 000
Credit sales (?)	? = 85 000	Discount allowed	1 500
		Sales returns	2 000
		Irrecoverable debts	500
		Balance c/d	13 000
	97 000		97 000

Total credits = 80,000 + 1,500 + 2,000 + 500 + 13,000 = 97,000. Credit sales = 97,000 − 12,000 = $85,000 (the balancing figure).

Enter all known items; the balancing figure is the unknown.
Commonly used to find credit sales or closing receivables.
Get every adjusting item (discounts, returns, irrecoverable debts, contra) in.
Same skill as reconstructing the receivables account (1.5.2).

See the full worked example for sales ledger control accounts →

Benefits and limitations

A strong check, but it does not catch every error.

Benefits:

Provides an independent check on the sales ledger and localises errors.
Gives a quick total of receivables for the financial statements.
Helps deter and detect fraud (segregation of duties).

Limitations:

It does not detect every error — for example, an error of commission (a sale posted to the wrong customer) leaves the total unchanged, so the control account still agrees.
It is only as reliable as the totals from the books of prime entry — an error in those totals is carried into the control account.
It does not check the individual customer balances within the ledger.

So a control account that agrees with the ledger gives reasonable, not absolute, assurance.

Benefits: independent check, localises errors, quick receivables total, fraud control.
Limitation: misses errors within a ledger (e.g. wrong customer — total unchanged).
Only as reliable as the books of prime entry totals.
Agreement gives reasonable, not absolute, assurance.

See the full worked example for sales ledger control accounts →

Quick recap

SLCA summarises all credit customers; its balance should equal the total of the customer accounts.
Debit: opening balance, credit sales, dishonoured cheques, interest charged.
Credit: receipts, discount allowed, sales returns, irrecoverable debts, contra, closing balance.
Built from books of prime entry totals — an independent check.
Used to find a missing figure (e.g. credit sales) as the balancing figure.
Benefits: localises errors, quick total, fraud control; limitation: misses errors within the ledger.

Memorise this

Verbatim phrases and definitions Cambridge mark schemes credit.

SLCA debit: opening balance, credit sales, dishonoured cheques, interest charged.
SLCA credit: receipts, discount allowed, sales returns, irrecoverable debts, contra, closing balance.
Cash sales are NOT in the control account; only credit sales.
A dishonoured cheque is a debit; a contra is a credit.

How it’s examined

Frequently tested on Paper 2 and Paper 3: Prepare the sales ledger control account (commonly 6-9 marks, marked per correct entry), Find the credit sales / closing receivables, and State the benefits/limitations of control accounts. Examiner reports note candidates putting contras or dishonoured cheques on the wrong side, and including cash sales.

Sources: Cambridge International AS & A Level Accounting 9706 syllabus (2026-2028); 9706 Paper 2 & Paper 3 past papers & mark schemes, 2022-2024; 9706 Examiner Reports, 2022-2024. Last reviewed 2026-06-17.

Take this whole topic with you

Step-by-step worked examples — Sales Ledger Control Accounts

Step-by-step solutions to past-paper-style questions on sales ledger control accounts, written exactly the way a tutor would explain them at the board.

Question type:

1Debit or credit side? (5 marks)
Getting startedIdentify & classify• 9706 Paper 1/2 style• control account, AO1
Question
State the side of the sales ledger control account for each: (i) credit sales; (ii) discount allowed; (iii) a dishonoured cheque; (iv) irrecoverable debts; (v) a contra with the purchases ledger. (5 marks)
Step-by-step solution
1. Step 1
  (i) Credit sales → debit (increases receivables).
2. Step 2
  (ii) Discount allowed → credit (reduces receivables).
3. Step 3
  (iii) Dishonoured cheque → debit (reinstates the debt).
4. Step 4
  (iv) Irrecoverable debts → credit (removes the debt).
5. Step 5
  (v) Contra → credit (sets off against a payable).
Answer
(i) Dr; (ii) Cr; (iii) Dr; (iv) Cr; (v) Cr.
Examiner tip
Dishonoured cheques are a debit; contras and irrecoverable debts are credits.
2Prepare the control account (6 marks)
Building confidenceMulti-step problem• control account, AO2
Question
Prepare the sales ledger control account and find the closing balance: opening receivables $18,000; credit sales$ 96,000; receipts from customers $84,000; discount allowed$ 2,100; sales returns $1,900; irrecoverable debts$ 600. (6 marks)
Step-by-step solution
1. Step 1
  Debit: balance b/d 18,000; credit sales 96,000 = 114,000.
2. Step 2
  Credit: bank 84,000; discount allowed 2,100; sales returns 1,900; irrecoverable debts 600 = 88,600.
3. Step 3
  Balance c/d = 114,000 − 88,600 = $25,400 (closing receivables).
Answer
Closing receivables = $25,400.
Examiner tip
Opening balance + credit sales on the debit; all reductions on the credit.
3Control account with a dishonoured cheque (6 marks)
Building confidenceMulti-step problem• control account, AO2
Question
Opening receivables $22,000; credit sales$ 110,000; receipts $98,000; discount allowed$ 2,400; sales returns $2,600; irrecoverable debts$ 900; a customer's cheque for $1,300 was dishonoured. Prepare the sales ledger control account. (6 marks)
Step-by-step solution
1. Step 1
  Debit: balance b/d 22,000; credit sales 110,000; dishonoured cheque 1,300 = 133,300.
2. Step 2
  Credit: bank 98,000; discount allowed 2,400; sales returns 2,600; irrecoverable debts 900 = 103,900.
3. Step 3
  Balance c/d = 133,300 − 103,900 = $29,400.
Answer
Closing receivables = $29,400.
Examiner tip
The dishonoured cheque is added on the debit side (the debt is reinstated).
4Control account with a contra (6 marks)
Building confidenceMulti-step problem• contra, AO2
Question
Opening receivables $15,000; credit sales$ 70,000; receipts $60,000; discount allowed$ 1,200; sales returns $1,500; contra (set-off with purchases ledger)$ 1,800. Prepare the sales ledger control account. (6 marks)
Step-by-step solution
1. Step 1
  Debit: balance b/d 15,000; credit sales 70,000 = 85,000.
2. Step 2
  Credit: bank 60,000; discount allowed 1,200; sales returns 1,500; contra 1,800 = 64,500.
3. Step 3
  Balance c/d = 85,000 − 64,500 = $20,500.
Answer
Closing receivables = $20,500.
Examiner tip
The contra is a credit (it offsets the customer against the same party as a supplier).
5Find the credit sales (6 marks)
StretchMulti-step problem• missing figure, AO2
Question
Opening receivables $20,000; closing receivables$ 24,500; receipts $112,000; discount allowed$ 2,800; sales returns $3,200; irrecoverable debts$ 1,100; contra $1,400. Calculate the credit sales for the year. (6 marks)
Step-by-step solution
1. Step 1
  Credit side = 112,000 + 2,800 + 3,200 + 1,100 + 1,400 + 24,500 (balance c/d) = 145,000.
2. Step 2
  Debit side = opening 20,000 + credit sales (?).
3. Step 3
  Credit sales = 145,000 − 20,000 = $125,000 (balancing figure).
Answer
Credit sales = $125,000.
Examiner tip
Credit sales is the debit-side balancing figure; include closing balance on the credit side.
6Control account with a credit balance (6 marks)
StretchMulti-step problem• control account, AO2
Question
Opening: receivables (debit) $16,000 and one customer with a credit balance of$ 400. During the year: credit sales $88,000; receipts$ 80,000; discount allowed $1,600; sales returns$ 1,800. The closing credit balances total $500. Calculate the closing debit balance of receivables. (6 marks)
Step-by-step solution
1. Step 1
  Debit: balance b/d 16,000; credit sales 88,000; closing credit balance c/d 500 = 104,500.
2. Step 2
  Credit: opening credit balance b/d 400; bank 80,000; discount allowed 1,600; sales returns 1,800; closing debit balance c/d (?).
3. Step 3
  Known credit items (excl. closing) = 400 + 80,000 + 1,600 + 1,800 = 83,800.
4. Step 4
  Closing debit balance = 104,500 − 83,800 = $20,700.
Answer
Closing debit receivables = $20,700 (plus credit balances$ 500).
Examiner tip
Show both the opening and closing credit balances on the opposite sides.
7Effect of an omitted item (5 marks)
StretchMulti-step problem• control account, AO2
Question
A control account was prepared with a closing balance of $30,000, but the irrecoverable debts of$ 700 had been omitted. State the corrected closing balance and explain the effect. (5 marks)
Step-by-step solution
1. Step 1
  Irrecoverable debts are a credit in the control account (they reduce receivables).
2. Step 2
  Adding the missing $700 credit reduces the closing balance.
3. Step 3
  Corrected closing receivables = 30,000 − 700 = $29,300.
4. Step 4
  The original balance overstated receivables (and the asset in the SOFP) by $700.
Answer
Corrected closing receivables = $29,300 (originally overstated by$ 700).
Examiner tip
Omitting a credit overstates the closing balance.
8Using the control account to find an error (4 marks)
StretchWord problem• control account, AO3
Question
The sales ledger control account balance is $24,000 but the total of the individual customer accounts is$ 23,400. Explain what this tells the business and what it should do. (4 marks)
Step-by-step solution
1. Step 1
  The two figures should be equal; a difference of $600 means there is an error in the sales ledger.
2. Step 2
  The disagreement localises the error to the sales ledger (or the control account totals).
3. Step 3
  The business should investigate the $600 difference — checking postings, additions and any omitted items.
4. Step 4
  Once found, the relevant account (control or individual) is corrected so the two agree.
Answer
A $600 difference signals an error in the sales ledger; the business investigates and corrects it so the two agree.
Examiner tip
The control account localises the error, narrowing the search.
9Limitation of a control account (4 marks)
StretchWord problem• limitations, AO3
Question
Explain why a sales ledger control account that agrees with the sales ledger does not guarantee the ledger is free from error. (4 marks)
Step-by-step solution
1. Step 1
  Some errors leave the total unchanged — e.g. a sale posted to the wrong customer (error of commission).
2. Step 2
  Both the control total and the ledger total are still correct in total, so they agree.
3. Step 3
  The control account checks the total, not the individual customer balances.
4. Step 4
  So agreement gives reasonable, not absolute, assurance.
Answer
Errors that don't change the total (e.g. wrong customer) leave the control agreeing; it checks the total, not each account.
Examiner tip
The classic limitation: a wrong-customer posting leaves the total unaffected.
10Benefits of control accounts (4 marks)
StretchIdentify & classify• benefits, AO1
Question
State four benefits to a business of preparing control accounts. (4 marks)
Step-by-step solution
1. Step 1
  Provide a check on the accuracy of the ledger (control total = sum of individual balances).
2. Step 2
  Localise errors to a particular ledger.
3. Step 3
  Give a quick total of receivables/payables for the financial statements.
4. Step 4
  Help deter and detect fraud (independent totals, segregation of duties).
Answer
Check ledger accuracy; localise errors; quick total of receivables/payables; deter/detect fraud.
Examiner tip
Distinct benefits each score.

Model Answers — Sales Ledger Control Accounts

High-scoring sample answers for sales ledger control accounts on the Cambridge IGCSE paper, with examiner-style notes mapping each response to the mark scheme and assessment objectives.

Question 1
9706 Paper 2 style4 marks
Q (4 marks). State whether each appears on the debit or credit side of the sales ledger control account: (a) sales returns; (b) credit sales; (c) interest charged to a customer; (d) discount allowed.
Model answer
(a) Sales returns → credit. (b) Credit sales → debit. (c) Interest charged to a customer → debit (increases the debt). (d) Discount allowed → credit.
Why this scores
Marking (point-based, 4). 1 mark each. Increases to receivables are debits; reductions are credits.
Question 2
9706 Paper 2 style5 marks
Q (5 marks). Prepare the sales ledger control account and find the closing balance: opening receivables $14,000; credit sales$ 82,000; receipts $73,000; discount allowed$ 1,800; sales returns $1,200.
Model answer
Sales ledger control account

Dr $ Cr $
Balance b/d 14 000 Bank 73 000
Credit sales 82 000 Discount allowed 1 800
Sales returns 1 200
Balance c/d 20 000
96 000 96 000

Closing receivables = $20,000.
Why this scores
Marking (point-based, 5). Opening + credit sales on debit (2); receipts, discount, returns on credit (2); balance c/d $20,000 (1).
Question 3
9706 Paper 2/3 style6 marks
Q (6 marks). Prepare the sales ledger control account: opening receivables $26,000; credit sales$ 140,000; receipts $120,000; discount allowed$ 3,200; sales returns $2,800; irrecoverable debts$ 1,000; contra with purchases ledger $1,500; a dishonoured cheque$ 900.
Model answer
Sales ledger control account

Dr $ Cr $
Balance b/d 26 000 Bank 120 000
Credit sales 140 000 Discount allowed 3 200
Dishonoured cheque 900 Sales returns 2 800
Irrecoverable debts 1 000
Contra 1 500
Balance c/d 38 400
166 900 166 900

Closing receivables = $38,400.
Why this scores
Marking (point-based, 6). Debits: opening, credit sales, dishonoured cheque (2). Credits: bank, discount, returns, irrecoverable debts, contra (3). Balance c/d $38,400 (1).
Question 4
9706 Paper 2/3 style6 marks
Q (6 marks). Calculate the credit sales: opening receivables $30,000; closing receivables$ 34,000; receipts $150,000; discount allowed$ 4,000; sales returns $3,500; irrecoverable debts$ 1,200; contra $1,800.
Model answer
Reconstruct the control account; credit sales is the balancing figure.

Credit side = receipts 150,000 + discount 4,000 + returns 3,500 + irrecoverable 1,200 + contra 1,800 + closing balance 34,000 = 194,500. Debit side = opening 30,000 + credit sales. Credit sales = 194,500 − 30,000 = $164,500.
Why this scores
Marking (point-based, 6). All credit items incl. closing balance (3); opening balance (1); arithmetic (1); credit sales $164,500 (1).

Dr	$	Cr	$
Balance b/d	14 000	Bank	73 000
Credit sales	82 000	Discount allowed	1 800
		Sales returns	1 200
		Balance c/d	20 000
	96 000		96 000

Dr	$	Cr	$
Balance b/d	26 000	Bank	120 000
Credit sales	140 000	Discount allowed	3 200
Dishonoured cheque	900	Sales returns	2 800
		Irrecoverable debts	1 000
		Contra	1 500
		Balance c/d	38 400
	166 900		166 900

Question 5

9706 Paper 3 style6 marks

Q (6 marks). Prepare the sales ledger control account, showing both balances: opening debit balances $40,000 and credit balances$ 600; credit sales $200,000; receipts$ 185,000; discount allowed $5,000; sales returns$ 4,200; irrecoverable debts $1,800; closing credit balances$ 900.

Model answer

Sales ledger control account

Dr	$	Cr	$
Balance b/d (debit)	40 000	Balance b/d (credit)	600
Credit sales	200 000	Bank	185 000
Balance c/d (credit)	900	Discount allowed	5 000
		Sales returns	4 200
		Irrecoverable debts	1 800
		Balance c/d (debit)	44 300
	240 900		240 900

Closing receivables: debit balances $44,300 (and credit balances $900).

Why this scores

Marking (point-based, 6). Opening debit + credit balances on opposite sides (2); credit sales debit (1); reductions credit (2); closing debit balance $44,300 (1).

Question 6
9706 Paper 3 evaluation style6 marks
Q (6 marks). Explain the benefits and limitations of preparing a sales ledger control account.
Model answer
Benefits.

It provides a check on the accuracy of the sales ledger: the control balance should equal the total of the individual customer balances, so a difference reveals an error.

It localises errors to the sales ledger, narrowing the search rather than re-checking the whole books.

It gives a quick total of trade receivables for the financial statements.

Because it is built from independent totals (often by a different person), it helps deter and detect fraud (segregation of duties).

Limitations.

It does not detect every error: an error of commission (a sale posted to the wrong customer) leaves the total unchanged, so the control still agrees.

It is only as reliable as the books of prime entry totals — an error there is carried into the control account.

It checks the total, not the individual balances.

Conclusion. A control account is a valuable check that improves accuracy and helps control fraud, but agreement gives reasonable, not absolute, assurance, so it should be used alongside other checks.
Why this scores
Marking (point-based, ~6). Benefits (check/localise/quick total/fraud) (~3); limitations (misses wrong-customer errors / relies on totals) (~2); conclusion (~1).
Question 7
9706 Paper 2/3 style4 marks
Q (4 marks). A business finds that its sales ledger control account balance is $52,000 but the total of the individual customer balances is$ 52,900. Explain what this indicates and the action the business should take.
Model answer
The control account balance and the total of the individual customer balances should be equal. A difference of $900 indicates an error either in the sales ledger (the individual accounts) or in the control account (the totals from the books of prime entry).

The business should investigate the $900 difference — for example checking the additions of the customer accounts, the books of prime entry totals, and whether any item (discount, return, irrecoverable debt or contra) has been omitted or posted to only one of the two records. Once the error is found, the relevant account is corrected so that the control account and the ledger total agree.
Why this scores
Marking (point-based, 4). $900 difference = error in the ledger/control (~2); investigate (additions/omissions) and correct so they agree (~2).
Question 8
9706 Paper 3 style5 marks
Q (5 marks). A sales ledger control account was prepared showing closing receivables of $40,000. It was then found that (a) the sales journal had been overcast by$ 700 and (b) a contra of $500 had been omitted. Calculate the corrected closing receivables.
Model answer
(a) Sales journal overcast by $700 → credit sales (a debit) is $700 too high → reduce receivables by $700.

(b) Contra of $500 omitted → a contra is a credit (reduces receivables) → reduce receivables by $500.

Corrected closing receivables = 40,000 − 700 − 500 = $38,800.
Why this scores
Marking (point-based, 5). Overcast sales reduces receivables $700 (2); omitted contra reduces receivables$ 500 (2); corrected $38,800 (1).
Question 9
9706 Paper 3 style5 marks
Q (5 marks). Explain how preparing a sales ledger control account, kept by a different person from the sales ledger clerk, can help a business control fraud.
Model answer
The control account is built from the books of prime entry totals, independently of the individual customer accounts. If it is maintained by a different person from the one who keeps the sales ledger, this creates segregation of duties.

A clerk who manipulated a customer's account (for example to hide a misappropriated receipt) would cause the sales ledger total to differ from the control account, because the control account was prepared from independent totals. The disagreement would be detected when the two are compared, so the fraud is harder to conceal.

Knowing that an independent control account is checked also deters staff from attempting such fraud. However, the control would not catch a fraud where two people colluded to manipulate both records, so it gives reasonable, not absolute, protection.
Why this scores
Marking (point-based, 5). Independent totals + segregation of duties (~2); a manipulated ledger would disagree with the control (~2); deterrence / limitation of collusion (~1).
Question 10
9706 Paper 2 style2 marks
Q (2 marks). State two reasons why a business prepares a sales ledger control account.
Model answer
To check the accuracy of the sales ledger (the control balance should equal the total of the customer accounts).

To provide a quick total of trade receivables for the financial statements (also: to help localise errors and deter fraud).
Why this scores
Marking (point-based, 2). 1 mark each valid reason.

Key Definitions and Keywords — Sales Ledger Control Accounts

Definitions to memorise and the exact keywords mark schemes credit for sales ledger control accounts answers — sharpened from recent examiner reports for the 2026 Cambridge IGCSE sitting.

Sales ledger control account
Examiner keyword
A summary account that mirrors all the credit customers' accounts; its balance should equal the total of the individual balances in the sales ledger.
Credit sales
Examiner keyword
Sales made on credit (from the sales journal total); debited to the control account. Cash sales are excluded.
Dishonoured cheque
Examiner keyword
A customer's cheque not paid by the bank; debited to the control account as it reinstates the debt.
Discount allowed
Examiner keyword
Cash discount given to customers for prompt payment; credited to the control account (reduces receivables).
Irrecoverable debts
Examiner keyword
Debts written off as uncollectable; credited to the control account (the receivable is removed).
Contra (set-off)
Examiner keyword
Offsetting a balance owed by a customer against an amount owed to the same party as a supplier; credited to the sales ledger control account.
Balancing figure
The figure needed to balance the control account; used to find a missing item such as credit sales.
Localising errors
Using a control account to narrow the search for an error to a particular ledger when the two totals disagree.

Common Mistakes and Misconceptions — Sales Ledger Control Accounts

The traps other students keep falling into on sales ledger control accounts questions — taken from recent Cambridge IGCSE examiner reports and mark schemes — and how to avoid them.

✕Including cash sales in the control account
9706 Examiner Reports
Why it happens
Treating all sales the same.
How to avoid it
Only CREDIT sales pass through receivables. Cash sales never enter the sales ledger control account.
✕Putting a dishonoured cheque on the credit side
9706 Examiner Reports
Why it happens
Associating cheques with receipts.
How to avoid it
A dishonoured cheque REINSTATES the debt, so it is a DEBIT in the control account.
✕Putting a contra on the debit side
9706 Examiner Reports
Why it happens
Confusing it with sales.
How to avoid it
A contra REDUCES the receivable (set off against a payable), so it is a CREDIT in the sales ledger control account.
✕Omitting discounts, returns, irrecoverable debts or contra
9706 Examiner Reports
Why it happens
Focusing only on sales and receipts.
How to avoid it
Include ALL items that change receivables, or the balance/missing figure will be wrong.
✕Believing agreement guarantees an error-free ledger
9706 Examiner Reports
Why it happens
The totals match.
How to avoid it
Errors that don't change the total (e.g. wrong customer) leave the control agreeing; it gives reasonable, not absolute, assurance.
✕Ignoring customers with credit balances
9706 Examiner Reports
Why it happens
Assuming all receivables are debit balances.
How to avoid it
Show opening/closing credit balances on the opposite sides (e.g. an overpayment is a credit balance).

Sales Ledger Control Accounts

Detailed Study Notes

At a glance

What you’ll learn

Quick recap

Memorise this

How it’s examined

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1Debit or credit side? (5 marks)

2Prepare the control account (6 marks)

3Control account with a dishonoured cheque (6 marks)

4Control account with a contra (6 marks)

5Find the credit sales (6 marks)

6Control account with a credit balance (6 marks)

7Effect of an omitted item (5 marks)

8Using the control account to find an error (4 marks)

9Limitation of a control account (4 marks)

10Benefits of control accounts (4 marks)

Sales ledger control account

Credit sales

Dishonoured cheque

Discount allowed

Irrecoverable debts

Contra (set-off)

Balancing figure

Localising errors

✕Including cash sales in the control account

✕Putting a dishonoured cheque on the credit side

✕Putting a contra on the debit side

✕Omitting discounts, returns, irrecoverable debts or contra

✕Believing agreement guarantees an error-free ledger

✕Ignoring customers with credit balances