Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 16)

A company has a debit balance in its Sales Ledger Control Account. What does this signify?
The company has overpaid its customers.
The company has made a profit from its sales.
Customers owe money to the company.
The company owes money to its customers.

Explanation

A debit balance in the Sales Ledger Control Account indicates that customers owe the company money.

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