purchase ledger

System

Hi

I always thought that when you put an invoice on in the purchase ledger, that it was a debit, then then purchase ledger control a credit.

But after looking at the past exam paper, it looks like a purchase goes on as a credit....is ths right??

System

Re:purchase ledger

In the actual supplier's ledger it will show as a credit to represent that you have bought goods from them and that you are due to pay them.

The opposit entry will be a debit in the profit and loss account.

The total of all the suppliers ledgers balance will be summarised and give you your creditors control balance, shown as a credit in the balance sheet.

I hope this helps.

Regards

Dean

System

Re:purchase ledger

Hi Dean

Thanks alot, that does help!!