AAT Level 2 Introduction to Bookkeeping Practice Test

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What is the function of the Sales Ledger Control Account?

To list all purchases from suppliers.

To record cash receipts from customers.

To summarise the total balances of all customers and reconcile the debtors’ ledger with the general ledger.

The function being tested is the ability to see how a Sales Ledger Control Account behaves in double-entry bookkeeping. The Sales Ledger Control Account in the General Ledger acts as a single summary figure for all customers’ amounts owed. It mirrors the total of individual customer balances in the Sales Ledger and is used to reconcile that ledger with the General Ledger. Each credit sale or return updates the control account through the related customer accounts, and cash receipts or other adjustments decrease it. The key purpose is to provide a convenient check that the total of individual debts matches the general ledger total, helping spot errors or discrepancies quickly. It’s not about listing purchases from suppliers (that belongs to the Purchases Ledger) and it isn’t used to calculate gross profit, which comes from sales minus cost of goods sold.

To calculate gross profit on sales.