Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 42)
What journal entry would be made to record a cash refund from a supplier in the Purchases Ledger?
Debit Purchases Ledger Control Account; Credit Cash.
Debit Cash; Credit Purchases Ledger Control Account.
Debit Supplier Account; Credit Cash.
Debit Cash; Credit Supplier Account.
Explanation
The cash account would be debited because the business would have more cash. The supplier account would be credited because the business would owe the supplier less money.
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