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GCE Financial Accounting 1989 Question 15

Question 15

Control Accounts

The balance in the purchases ledger control account is

  1. A.total purchases
  2. B.total sales
  3. C.the total of the debtors
  4. D.the total of the creditors
  5. E.the total credit purchases.
Show the answer and explanation

Answer: D (the total of the creditors)

Explanation

The purchases ledger control account summarises suppliers' accounts, so its balance is the total owed to creditors.