All 25 Sales & Purchase Ledgers questions
More in Sales & Purchase Ledgers
What is accounts receivable and accounts payable? What is a credit customer versus a cash customer? What is a purchase invoice checked against before posting? How is a customer's account in the sales ledger written up? What is a contra between the sales and purchases ledgers (set-off)? How do you deal with a credit balance in the sales ledger? What is an aged receivables (debtors) analysis and why is it used? How is a refund to a customer or from a supplier recorded? How is an early-settlement discount received from a supplier recorded? How do you record goods taken by the owner from inventory (drawings in kind)?
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How is a supplier's account in the purchases ledger written up?

Intermediate

Answer

Credit the supplier with invoices (from the purchases day book). Debit them with purchases returns, payments made, and discounts received. The balance (usually a credit) shows how much is still owed to them. Entries come from the purchases day book, returns day book, and cash book.
Supplier account:
  Cr Invoices 900
  Dr Payment 600, Discount received 15, Return 85
  Balance c/d 200 (still owed)
Real-world example A supplier's account is credited when their invoice arrives and debited when paid or when goods are returned.

Common follow-ups: What is debited to a supplier account? | What does a credit balance mean?

Control Accounts Cash Book & Petty Cash Sales & Purchase Ledgers
All 25 Sales & Purchase Ledgers questions