For purchase of inventory, the normal ledger entry is Dr purchases, Cr bank/AP
When we make sales we just Dr bank/AR, Cr sales, and don't touch the purchases ledger
But at the end of the accounting period when we need to transfer the balances to the trial balance, how do we account for that? Is the crediting of purchases ledger involved at all?
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purchase ledger account to trial balance for preparation of financial statements
5mo ago#1This is a Paper FA question rather than Paper MA.
Our free lectures on Chapter 9 of our lecture notes work through all of the relevant entries.
(I think also that you are confused between the purchase ledger and the purchases account. The ledger contains all the payables accounts.)
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