Which ledger would you consult to see how much customers owe you?

Which ledger would you consult to see how much customers owe you?

• A. Receivables ledger
• B. Payables ledger
• C. General ledger
• D. Cash book

Answer: (A)

Amounts owed by customers are tracked in the receivables ledger, which lists each debtor and their outstanding balance. This is the place to check how much customers as a whole owe you and to see the balance for each individual customer. The totals in the receivables ledger usually match the accounts receivable control account in the general ledger, helping you monitor overall liquidity and aging of debts. The other ledgers serve different purposes: the payables ledger records what you owe to suppliers, the general ledger is the main compilation of all accounts but doesn’t show the detailed customer balances, and the cash book records actual cash receipts and payments rather than outstanding customer balances.

Amounts owed by customers are tracked in the receivables ledger, which lists each debtor and their outstanding balance. This is the place to check how much customers as a whole owe you and to see the balance for each individual customer. The totals in the receivables ledger usually match the accounts receivable control account in the general ledger, helping you monitor overall liquidity and aging of debts.

The other ledgers serve different purposes: the payables ledger records what you owe to suppliers, the general ledger is the main compilation of all accounts but doesn’t show the detailed customer balances, and the cash book records actual cash receipts and payments rather than outstanding customer balances.