Match each transaction item affecting the Purchases Ledger Control Account with its appropriate debit or credit entry classification.
- Credit PurchasesCredited to Purchases Ledger Control Account to record an increase in trade payables liability
- Discount ReceivedDebited to Purchases Ledger Control Account to reflect a reduction in amount owed due to early payment allowance
- Dishonoured Cheques Paid to SuppliersCredited to Purchases Ledger Control Account to reinstate the liability after a payment cheque is rejected by the bank
- Returns OutwardsDebited to Purchases Ledger Control Account to reduce trade payables for goods returned to suppliers
Cevap
Credit Purchases matches with Credited to record an increase in payables; Discount Received matches with Debited to reflect a reduction in owed amounts; Dishonoured Cheques match with Credited to reinstate liability; Returns Outwards matches with Debited to reduce trade payables.
The Purchases Ledger Control Account acts as a summary of the accounts payable ledger. Credit purchases increase the liability to suppliers (credited), while dishonoured cheques reinstate a previously reduced liability (credited). Conversely, allowances like discounts received and returns of merchandise lower the payable amount (debited).
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Anahtar Kavram
Purchases Ledger Control Account Debit and Credit Classifications