Explanation

The Purchase Ledger Control Account only records transactions with credit suppliers. The “Purchase journal” entry of ₦30,000 on the credit side represents the total credit purchases made during the period.

In bookkeeping, the purchase journal (also called purchases day book) records all goods bought on credit. When totaled and posted to the control account, it shows as a credit entry because it increases what we owe to suppliers.

This is not cash purchases because cash purchases go directly to the cash book, not through the purchase ledger. Cash purchases bypass the credit system entirely since payment happens immediately.

The ₦30,000 increases the liability to suppliers. Combined with the opening balance of ₦5,000, the total owed before any payments would be ₦35,000. The debit entries then reduce this amount through payments and other adjustments.