Accounting for IGCSE & O level - Accounting Procedures (Section 11 - No. 14)

In a purchases ledger, what is the effect of a cash payment made to a supplier?
Increases the balance.
Decreases the balance.
No impact on the balance.
The balance is transferred to another account.

Explanation

Paying a supplier reduces the amount owed to them, so the balance decreases.

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