Which statement about the sales ledger is correct?

• A. Records the cash receipts from customers.
• B. Lists all balances due from suppliers.
• C. Shows the bank reconciliation.
• D. Is the control ledger listing each debtor’s balance.

Answer: (D)

The sales ledger is the detailed record that shows what each customer owes. It lists every debtor and their balance, capturing all purchases and payments for individual customers. This makes it the ledger that holds the balances for each debtor, which the general ledger uses in its debtors control account. In other words, the sales ledger acts as the control ledger listing each debtor’s balance. The other options point to different records: cash receipts belong in the cash book, balances from suppliers appear in the purchases ledger, and bank reconciliations are a separate process. So this description best matches the function of the sales ledger.