Accounting for IGCSE & O level - Accounting Procedures (Section 16 - No. 47)

What does a credit balance in the Purchases Ledger Control Account represent?
The business owes money to suppliers.
Suppliers owe the business money.
The business has overpaid suppliers.
The business has made a profit from its purchases.

Explanation

A credit balance indicates that the business owes money to its suppliers.

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