What is the purchase ledger balance?

A. N29,000
B. N24,000
C. N4,000
D. N23,000

Correct Answer:

Option D – N23,000

Explanation

A bought (purchase) ledger is a system in accounting by which a business records and monitors its creditors. The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit. from the table above it is given as thus;

opening balance + credit purchase – returns outwards. ie, 4,000 + 25000 = 29,000 – 6,000 = 23,000