Which item is normally recorded on the debit side of the purchases ledger control account?
Correct answer: C. Discount received from suppliers
- A. Credit purchases
- B. Returns outward
- C. Discount received from suppliers
- D. Closing balance of trade payables
Explanation
Discount received reduces the amount payable to suppliers, so it is entered on the debit side of the purchases ledger control account. Credit purchases and the closing payable balance are normally credit entries.
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About Bank Reconciliation and Control Accounts
Bank reconciliation explains differences between the cash book and bank statement through unpresented cheques, outstanding deposits, bank charges, direct payments, credited amounts and recording errors. Control accounts summarise receivables and payables ledgers, and their balances are reconciled with individual accounts to locate discrepancies.
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