Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Where are amounts owed by customers for credit purchases found?

Options:

Accounts Receivable Journal

General Ledger

Sales Journal

Accounts Receivable Subsidiary Ledger

Correct Answer:

Accounts Receivable Subsidiary Ledger

Explanation:

The correct answer is Option (4) - Accounts Receivable Subsidiary Ledger.

Amounts owed by customers for credit purchases are found in the Accounts Receivable Subsidiary Ledger. This ledger provides detailed information about individual customer accounts, including the amounts they owe for credit purchases. The Accounts Receivable Subsidiary Ledger is a part of the overall accounting system and helps track the balances and transactions of each customer separately.