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Incomplete records

3.3 Purchases figures

The credit purchases figure can be derived from using a purchase ledger control
account. The idea is to insert into the ledger account all known information, and then
to derive the missing information as a balancing figure.

This can be simplified using the following pro-forma control account:

Payables ledger control account
Date Details $ Date Details $

In year Cash paid to suppliers X 01 Jan Balance b/d X
In year Contra with RLCA X In year Purchases (β figure) X

In year Discounts received X
In year Purchases returns X

31 Dec Balance c/d X
––– –––

X X
––– –––

Illustrations and further practice

Now try question TYU 3 from Chapter 18 of the Study Text.

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