Lesson 55: Journals - Payables (Creditors)
By now you know that an accounting system uses specialised journals for specific tasks:
Similarly, purchases by the business are captured in special journals:
The Creditors Journals have a creditor’s control column where the Cash Journals have a Bank column.
- Cash movements get recorded in the Cash Receipts and Cash Payments journals.
- Sales on credit are recorded in the Debtors Journal.
- Credit-sale returns are recorded in the Debtors Allowance Journal.
Similarly, purchases by the business are captured in special journals:
- Purchases on credit are recorded in the Creditors Journal.
- Credit-purchase returns are recorded in the Creditors Allowance Journal.
The Creditors Journals have a creditor’s control column where the Cash Journals have a Bank column.
Resources
- Student Workbook - Lesson 55 [1.3MB] - download