Accounting for IGCSE & O level - Accounting Procedures (Section 13 - No. 48)
Which of the following statements accurately describe the balances of the Purchases Ledger Control Account?
A debit balance indicates the total amount owed to suppliers.
A credit balance indicates the total amount the business has paid to suppliers.
A debit balance represents the total amount paid to the suppliers.
A credit balance indicates overpayments to suppliers.
Explanation
A credit balance would indicate overpayments or returns, and a debit indicates payments made.
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