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Purchases ledger

Also called: Payables ledger

What is a purchases ledger?

The purchases ledger holds one account for each credit supplier.

Invoices go on the credit side of the supplier's account. Credit notes and payments go on the debit side.

It is a subsidiary ledger: the detail behind the Trade payables total in the general ledger.

Example

A supplier sends two invoices, for £700.00 and £450.00, and is paid £700.00. Its account in the purchases ledger shows £450.00 still owed.

Why it matters

It shows what is owed to each supplier. The supplier balances added together must equal the balance on Trade payables. If they differ, something was posted wrongly.

Practise it

  1. How to post to each supplier's account9 min, easyPremium
  2. The general ledger and the two subsidiary ledgers10 min, easyPremium
  3. What goes in the purchases ledger control account10 min, mediumPremium
See the first roomHow to post to each supplier's account

Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].