Balance purchases ledger control accounts
Post supplier transactions, offsets and refunds, then interpret debit and credit balances in the purchases ledger control account.
Section 3.4 · Control accounts
Cambridge IGCSE Accounting 0452 / (9–1) 0985, 2027–2029 Version 1. These lessons follow the 2027–2029 syllabus only; the separate 2026 syllabus update is not yet mapped. Written practice is self-checked, not an official Cambridge grade. Full timed-paper practice and human subject-teacher review remain pending.
Before you begin
- No previous accounting study is assumed. Keep the business, transaction and accounting period in view, and distinguish a resource, a claim and a performance result.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
What does a credit balance in Purchases Ledger Control normally mean?
What you will learn
- Record credit purchases and common supplier settlements
- Prepare a purchases ledger control account with a contra and supplier refund
- Interpret debit or credit balances at the beginning and end of the account
Record movements in amounts owed to suppliers
Credit opening balances and credit purchases increase payables, so they are credits in Purchases Ledger Control. Payments, purchase returns, discounts received and contra entries reduce payables and are debits.
Interest charged by a supplier for an overdue amount increases the payable and is credited. A refund received for an earlier supplier overpayment reduces a debit amount recoverable from the supplier, so credit the control account and debit Bank.
Carry debit and credit balances correctly
A credit balance in Purchases Ledger Control normally means the business owes suppliers. A debit balance can represent an amount recoverable from a supplier, such as an overpayment. Keep debit and credit opening balances on their own sides. To balance the account, enter a net debit closing balance on the credit side as balance c/d, then bring it down as a debit; enter a net credit closing balance on the debit side as balance c/d, then bring it down as a credit.
Books of prime entry provide the transaction totals; the general journal can provide a contra. Digital posting can speed totals and provide an audit trail, but setup, duplicate imports and access controls still need review. Cambridge does not require reconciling the control-account balance with the individual purchases-ledger balances.
Pause and explain
The business receives a $60 refund from a supplier after an overpayment. What happens in Purchases Ledger Control?
Worked example
Opening supplier credit balances are $500; credit purchases $1,800 and overdue interest $20. Payments are $1,400, returns $120, discounts received $30 and contra $50. Find the closing balance.
Show the worked solution
- Credit total before closing = 500 + 1,800 + 20 = $2,320.
- Debit total = 1,400 + 120 + 30 + 50 = $1,600.
- Closing credit balance = 2,320 − 1,600 = $720.
Answer The purchases ledger control account closes with a $720 credit balance, meaning $720 is owed to suppliers overall.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
Opening supplier credit balances are $760. Credit purchases are $2,100; payments $1,600; purchase returns $90; discount received $40; contra $130. Find the closing balance.
Give me a hint
Add payable increases on the credit side and reductions on the debit side.
Compare my reasoning
- Credit total = 760 + 2,100 = $2,860.
- Debit total = 1,600 + 90 + 40 + 130 = $1,860.
- Closing credit = 2,860 − 1,860 = $1,000.
Closing Purchases Ledger Control balance: $1,000 credit, so $1,000 remains payable.
Look for these in your work
- Sides correct
- Totals correct
- Meaning stated
A supplier account has an opening debit balance of $120 due to an overpayment. The business later buys $500 on credit and pays $430. Calculate the closing balance and interpret it.
Give me a hint
Keep the opening debit on the debit side, then record the purchase as a credit and payment as a debit.
Compare my reasoning
- Debit total = opening debit 120 + payment 430 = $550.
- Credit total = credit purchase $500.
- Closing debit = 550 − 500 = $50 recoverable from the supplier.
Closing balance is $50 debit: the supplier owes the business $50, all else equal.
Look for these in your work
- Opening side correct
- Movements correct
- Debit balance interpreted
The sales and purchases control accounts both include the same customer's/supplier's balance and the business agrees a $200 contra. Explain the paired entries and one control a digital system should retain.
Give me a hint
An offset reduces both the receivable and payable without moving cash.
Compare my reasoning
- Credit Sales Ledger Control $200 to reduce the receivable.
- Debit Purchases Ledger Control $200 to reduce the payable.
- Retain a matched party reference and an authorised audit trail so the contra is not imported twice.
Dr Purchases Ledger Control $200; Cr Sales Ledger Control $200. No bank entry is made; keep an authorised, matched record of the offset.
Look for these in your work
- Both control accounts posted
- No cash movement
- Digital audit control described
Common mistakes
- Debiting credit purchases instead of crediting them
- Crediting a payment that reduces a supplier balance
- Treating a supplier debit balance as an amount the business owes
What can you explain now?
The business pays a supplier by bank transfer. Which control-account side records the reduction in the payable?
Compare with the explanation
Debit Purchases Ledger Control
A payment reduces the liability to the supplier.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
How can a debit closing balance in Purchases Ledger Control be interpreted?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.