Given: I. Cash refunds II. Debit note issued III. Dishonoured cheque IV. Purchases journal The item on the credit side of purchase ledger control…

JAMB Accounting 2023 👁 26 views

Given:
I. Cash refunds
II. Debit note issued
III. Dishonoured cheque
IV. Purchases journal

The item on the credit side of purchase ledger control account includes

  1. I,II and III only
  2. I and II only
  3. I and IV only ✓
  4. I,II and IV only

Explanation

Purchase ledger control account tracks what the business owes suppliers. Cash refunds reduce what you owe (credit side). Purchases journal totals also appear on credit side when setting up the account.

Debit notes are issued when returning goods, which goes on debit side. Dishonoured cheques relate to sales, not purchases from suppliers.

Remember: Credit side of purchase ledger shows amounts that reduce your debt to suppliers.

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