hi
the opentuition notes say that in the payables ledger, the entires are simply memorandum entries (pg 43). this has confused me.
i always thought that supplier ledgers were debited/credited.
e.g. purchases dr
xyz cr
now, with the control purchase account, the entry is
purchase dr
sales tax dr
purchase control account cr
i get the above.
but i am now confused between the 2 examples i have listed.
FIA Forums
CAT/FA1 PAPER: PAYABLES LEDGER
Hi, I think you need to be clear that:
1. In the General Ledger: (Double entry all done here)
There's a "Payable Control Account" inside the General Ledger.
From the Purchase Day Book, we debit Purchase A/c (net purchase), debit Sales Tax A/c (sales tax amt)
and credit Payable Control Account (Gross Amt) in the General Ledger with the "total" posted from the Purchase Day Book.
2. Payable Ledger: (separate thing from the General Ledger) (Single Credit/Debit entry here)
After that, you also need to Credit the "Payable Ledger" (which is the memorandum account, supplier's personal accounts),
with the "individual entries" (eg: invoice 123 from Supplier A $1000...and so on) into "Supplier A's account.
Single Credit entry: Cr Supplier A $1000
Im currently studying FA1 too...going for the dec exam soon :)
Hope it helps!
Regards,
Joey
thanks joey!
that was a great help.
am planning on taking fa1/fa2 in january
thanks again...lets keep in touch
sure :)
so ur taking fa1 in dec... what ur next plan?
going for FA2 in Jan 2014 :)
great ... let me know when u start sto study for fa2 ...
okie :)
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