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Dear Tutor,
Could you please explain the following terms in more details to me?
– the payables ledger database
– the purchase database vs the purchase day bookThank you in advance and kind regards.
Unusual terminology. Where did it come from?
I assume that the payables ledger database just means the payables ledger ie a file with an account for each supplier.
Not sure what the purchase database is. Could be a record of what was bought or could be another way of referring to the payables ledger.
The purchases day boook is just a list of invoices received. Fomr that individual invoices can be posted to accounts in the payables ledger and the totals posted to the payables ledger control account (total payables account) and to nominal ledger accounts.
Hey Gromit,
Thank you so much for your prompt reply and your explanation.
The terminology is taken from the acca wesite, section “past exam papers” and then pdf file: Answers.
just to confirm if i understood you well: The purchases day book is just a list of invoices receive and it does not mean that these invoices are recorded. Once they are in the payables ledger, means that they are recorded.
what is the difference between the payables ledger control account and nominal ledger accounts.
They are simply listed in the day book and only enter the double entry system when posted to the payables ledger.
The payables ledger control account is an account in the nominal ledger. The payables ledger shows the detail of all the payables making up that amount.
The purchases account is also in the nominal ledger.
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