Payable Ledger

Question 1

Debit

Answer 1

Payments to the supplier
(from the cash book)

Discount received
(if there was any)

Purchase returns (credit notes from the purchase returns journal)

Contra with a receivables ledger account

Balance c/d
(at the end of the period)

Question 2

Credit

Answer 2

Balance b/d
(at the start of the period)

Credit purchases
(invoices from the purchases journal)

Dishonoured cheque
(from the cash book)

Discount on dishonoured cheque
(if there was any)

Interest charged by payable
(if there is any)

Total

Balance b/d
(at the start of the next period)

Question 3

How is the amount from the supplier credited into the account?

Answer 3

Anything that increases the amount owed to the supplier is credited to the account

Question 4

How is the amount from the supplier debited into the account?

Answer 4

Anything that decreases the amount owed to the supplier is debited to the account