Accounting for purchases, returns and discounts

Which side is the brought down balance on the Payables Ledger Control Account

• Debit

• Credit

When transferring the balance from the Purchase Day Book to the PLCA, what value do you use?

• Net

• Gross

What financial information is contained in the Payables ledger (subsidiary)

• Total owed of all receivables

• Individual Gross balances of the supplier accounts

• Net individual balances of the supplier accounts

How is the PLCA categorised in the accounts?

• Asset

• Expense

• Liability

• Capital

Which side do you record a return in the Purchase Returns Account

• Debit

• Credit

Is Prompt Payment Discount recorded as

• Discount Received

• Discount Payable

The discounts received day book is a book of prime entry that contains

• Credit notes received from sellers for prompt payment discount

• Credit notes received from buyers for prompt payment discount

• Credit notes received from sellers for trade discount

Purchases are categorised as

• the purchase of goods with the intention that they should be resold at a profit

• An expense or overhead