Accounting for IGCSE & O level - Accounting Procedures (Section 11 - No. 27)

A business has a credit balance of $10,000 in its Purchases Ledger Control Account. The company then makes a credit purchase of $2,000. What is the new balance?
$8,000 (Debit)
$8,000 (Credit)
$12,000 (Debit)
$12,000 (Credit)

Explanation

The credit purchase increases the balance.

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