From the following information, prepare a purchase ledger control account for the month of May, clearly showing the balance carried forward at 31 May 20-9:

£

(i) 1 May Purchase ledger balances 20,690

(ii) Purchase day book 8,760

(iii) Returns outwards day book 490 iv) Cheques paid to creditors 9,765

(v) Discount received 470 When asked to prepare a purchase ledger control account, you must ask yourself, on each item; ‘ where would this appear on an normal creditor’s account?’ simply because the items appear in exactly the same place in the purchase ledger control account.

(i) This is the total of all the individual creditor’s balances; they would appear at the credit side of each creditor’s account, so the total is placed at the credit side of the control account.

(ii) This is the total ofthe purchases day book for the month ofMay (or the purchases account if day books are not used). Purchases are entered at the credit side of each supplier’s account, so the total for the month is placed at the credit side of the control account.

(iii) This is the total of the returns outwards day book for the month ofMay (or the returns outwards account if day books are not used). Returns outwards are entered at the debit side of each creditor’s account, so the total for the month is placed at the debit side of the control account.

(iv) This is the total amount of cheques paid to creditors during the month of May. Money paid out is entered at the debit side of each creditor’s account, so the total for the month is placed at the debit side of the control account.

(v) This is the total discount received during the month of May. Discount received is entered at the debit side o_f each creditor’s account, so the total for the month is placed at the debit side of the control account.