Accounting for IGCSE & O level - Accounting Procedures (Section 16 - No. 49)
Which of the following actions will increase the balance in a supplier's account within the purchases ledger?
Making a payment to the supplier.
Returning goods to the supplier.
Receiving a credit note from the supplier.
Making a credit purchase from the supplier.
Explanation
Making a credit purchase means the business now owes the supplier more, increasing the balance.