What does the payables ledger control account contain?

What does the payables ledger control account contain?

• A. The total owed by the business to all their suppliers
• B. The total amount of cash to be paid to suppliers
• C. The list of supplier contact details
• D. The value of inventory with suppliers

Answer: (A)

The payables ledger control account contains the total amount the business owes to all suppliers at a given date. It serves as a single summary in the general ledger that aggregates the balances from the individual supplier (subsidiary) ledger. Purchases made on credit increase this balance, while payments to suppliers decrease it; returns, discounts, and allowances also affect it. This control account is used to reconcile the overall amount owed with the detailed supplier balances. It doesn’t record cash to be paid (that’s in the cash/bank account), nor does it store supplier contact details (that’s in the supplier master data), nor the value of inventory with suppliers (that’s the inventory asset).

The payables ledger control account contains the total amount the business owes to all suppliers at a given date. It serves as a single summary in the general ledger that aggregates the balances from the individual supplier (subsidiary) ledger. Purchases made on credit increase this balance, while payments to suppliers decrease it; returns, discounts, and allowances also affect it. This control account is used to reconcile the overall amount owed with the detailed supplier balances.

It doesn’t record cash to be paid (that’s in the cash/bank account), nor does it store supplier contact details (that’s in the supplier master data), nor the value of inventory with suppliers (that’s the inventory asset).