PRC-1 · Chapter 3 · Question 28 of 100
When posting data from the Cash Book, how are individual payments made to credit suppliers processed in a manual ledger system?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) They are debited to individual supplier accounts within the Payables Ledger.
Explanation
Payments made to a supplier reduce the liability owed to them. Therefore, each payment recorded in the cash book is posted directly to the debit side of that specific supplier's account in the Payables Ledger.
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