PRC-1 · Chapter 3 · Question 95 of 100
When a business uses a 'Receivables Control Account' in the General Ledger, the individual customer accounts kept in the Receivables Ledger are considered:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Memorandum records only, strictly outside the double-entry system.
Explanation
When a control account is used in the general ledger to maintain the double-entry, the detailed subsidiary ledger acts only as a memorandum backup to track individual balances and does not form part of the double-entry.
More Ledgers and Trial Balance MCQs
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