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How is the total of the purchases day book posted to the nominal ledger?
A Debit purchases , Credit cash
B Debit purchases, Credit payables control.
I know the answer is B ,why not A??please explain it for me .
The purchase day book lists only purchases on credit, and the entry for purchases on credit is Dr Purchases; Credit Payables. Since they were bought on credit there is no entry in cash at all.
I do suggest that you watch our free lecture on Books of Prime Entry.
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