The objective of the purchases ledger control account is to establish the ____
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Correct Answer: Option A
Explanation:
The purchases ledger control account (also known as the creditors’ control account) is used to summarize and monitor credit purchases made from suppliers. It provides a total figure for amounts owed to creditors (suppliers) at any given time.
Objective of the Purchases Ledger Control Account:
- It tracks and summarizes all transactions related to creditors (suppliers).
- The main objective is to establish or confirm the amount of credit purchases, as well as monitor:
Payments made to suppliers
Purchase returns
Discounts received
Closing balances owed to creditors
The control account helps ensure that the total of individual supplier accounts (from the purchases ledger) matches the summarized amount in the general ledger, providing a useful check on accuracy and completeness.
The purchases ledger control account (also known as the creditors’ control account) is used to summarize and monitor credit purchases made from suppliers. It provides a total figure for amounts owed to creditors (suppliers) at any given time.
Objective of the Purchases Ledger Control Account:
- It tracks and summarizes all transactions related to creditors (suppliers).
- The main objective is to establish or confirm the amount of credit purchases, as well as monitor:
Payments made to suppliers
Purchase returns
Discounts received
Closing balances owed to creditors
The control account helps ensure that the total of individual supplier accounts (from the purchases ledger) matches the summarized amount in the general ledger, providing a useful check on accuracy and completeness.