Could someone help me with this Greenlight test?

Stephanie2

Why is the £1,080 paid in the credit side of the PLCA account?

I understand it should be showing on the credit side at the point of sale. But surly when the supplier has been paid we should debit £1,080?

A better explanation would be really appreciated




thanks

hal978

When a supplier is paid £1,080, it is not in the credit side of the PLCA, it is on the credit side of the cash book (i.e. you credit bank).