Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 28)
If the Purchases Ledger Control Account shows a debit balance at the end of a period, it indicates:
Total payments made to suppliers are higher than total purchases.
Total purchases are higher than total payments.
The company has overpaid the suppliers.
The supplier has made payments to the company.
Explanation
A debit balance indicates that the company has paid the supplier more than it owes.
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