| N | |
| Purchase ledger opening balance | 4,000 |
| sales ledger opening balance | 6,000 |
| credit purchase | 25,000 |
| Discounts allowed | 1,000 |
| Returns inwards | 2,000 |
| Credit sales during the year | 10,000 |
| Return outwards | 6,000 |
Use the information above to answer the following question;
what is the purchase ledger balance?
- N29,000
- N24,000
- N4,000
-
N23,000
The correct answer is: D
Explanation
A bought (purchase) ledger is a system in accounting by which a business records and monitors its creditors. The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit. from the table above it is given as thus;
opening balance + credit purchase - returns outwards. ie, 4,000 + 25000 = 29,000 - 6,000 = 23,000