Acca financial Accounting (FA) Study Text ac ca (FA)

Recording credit balances 

Credit balances on the receivables’ ledger control account 

Sometimes the receivables’ ledger control account may show a credit 

balance, i.e. we owe the customer money. These amounts are usually 

small and arise when: 

•

The customer has overpaid.

•

Credit notes have been issued for fully-paid-for goods.

•

Payment is received in advance of raising invoices.

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Chapter 14 

KAPLAN PUBLISHING

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The payables’ ledger control account may show a debit balance for 

similar reasons. 

Technically such balances should not exist and should be transferred to 

the correct account. Thus a credit in a receivable account should be 

adjusted as follows: 

Dr Receivable account   $X 

Cr Payable account  

$X 

Debit balances in the payables’ ledger will be adjusted using exactly the 

same double entry.