PRC-1 · Chapter 3 · Question 67 of 100
At the end of the month, the total of the Purchases Day Book is Rs. 120,000. How is this periodic total posted to the General Ledger?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Debit Purchases Rs. 120,000; Credit Payables Control Rs. 120,000
Explanation
The Purchases Day Book summarizes credit purchases. The total is posted by debiting the Purchases expense account and crediting the Payables Control account to recognize the liability.
More Ledgers and Trial Balance MCQs
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