A debit balance of N420 on the purchase ledger control account means that as at that date............

Assessment: WAEC SSCE - Financial Accounting - 2018 (Objective) Subject: Financial Accounting

Question 1 Report

trade creditors have been paid by N420

trade creditors are owed N420

goods returned to trade creditors amounted to N420

total supplies from trade creditors amounted to N420

Answer Details

A debit balance of N420 on the purchase ledger control account means that trade creditors are owed N420. The purchase ledger control account is a summary of all the transactions made with trade creditors, including purchases, payments, and returns. A debit balance on the account means that the total amount owed to trade creditors is higher than the total amount paid to them. In other words, the business has purchased goods or services on credit from its suppliers, but has not yet paid for them in full. Therefore, is the correct answer: trade creditors are owed N420.

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A debit balance of N420 on the purchase ledger control account means that as at that date............

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