How to read a customer's account
A customer's account lists every invoice, credit note and payment. Read one to find what is owed and what is still unpaid.
Task 1What the account shows4 questions
Each credit customer has an account in the sales ledger. It lists everything that has happened between the business and that customer.
- Debit side: invoices. The customer owes more
- Credit side: credit notes and payments. The customer owes less
| Date | Details | Debit | Credit |
|---|---|---|---|
| 1 Jun | Balance brought forward | 360.00 | |
| 5 Jun | Invoice 518 | 480.00 | |
| 12 Jun | Payment received | 360.00 | |
| 18 Jun | Credit note 27 | 60.00 | |
| 26 Jun | Invoice 541 | 300.00 |
The balance is the debits less the credits. It is what the customer owes.
Task 2Finding what is still unpaid2 questions
Task 3The credit limit4 questions