Where are amounts owed by customers for credit purchases found :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Accounts Receivable Subsidiary Ledger
Amounts owed by customers are debtors (accounts receivable). Each customer’s balance is kept in a separate account in the accounts receivable subsidiary ledger, whose total agrees with the control account in the general ledger.
Why the other options are incorrect
Option (1) Accounts Receivable Journal — Incorrect. A journal records transactions as they occur; it does not hold the balance owed by each customer.
Option (2) General Ledger — Incorrect. It shows only the total of all debtors, not each customer’s amount.
Option (3) Sales Journal — Incorrect. It lists credit sales when they are made, not the amounts still outstanding.
NCERT (2026-27 edition):
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