Why is "Treating the PLCA like the sales ledger control account" a common mistake in Purchases Ledger Control Accounts?

Why it happens: Carrying over the receivables layout. How to avoid it: A payable is a CREDIT balance, so everything is reversed: credit purchases are a credit; payments, discounts and returns are debits. Source: 9706 Examiner Reports

Why is "Including cash purchases" a common mistake in Purchases Ledger Control Accounts?

Why it happens: Treating all purchases the same. How to avoid it: Only CREDIT purchases pass through payables. Cash purchases never enter the control account. Source: 9706 Examiner Reports

Why is "Putting the contra on the credit side" a common mistake in Purchases Ledger Control Accounts?

Why it happens: Confusing it with purchases. How to avoid it: A contra REDUCES the payable, so it is a DEBIT in the purchases ledger control account. Source: 9706 Examiner Reports

Why is "Treating interest charged by a supplier as a debit" a common mistake in Purchases Ledger Control Accounts?

Why it happens: Associating interest with an expense paid. How to avoid it: Interest charged BY a supplier INCREASES the amount owed → a CREDIT in the control account. Source: 9706 Examiner Reports

Why is "Omitting discounts, returns or contra" a common mistake in Purchases Ledger Control Accounts?

Why it happens: Focusing only on purchases and payments. How to avoid it: Include ALL items that change payables, or the balance/missing figure will be wrong. Source: 9706 Examiner Reports

Why is "Believing agreement guarantees an error-free ledger" a common mistake in Purchases Ledger Control Accounts?

Why it happens: The totals match. How to avoid it: Errors that don't change the total (e.g. wrong supplier) leave the control agreeing; it gives reasonable, not absolute, assurance. Source: 9706 Examiner Reports

Cambridge International A Levels Accounting (9706)

Purchases Ledger Control Accounts

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Detailed Study Notes

Detailed notes on Reconciliation and Verification for Cambridge International A Levels Accounting, covering key concepts, explanations, examples, and exam-focused revision points.

Purchases Ledger Control Accounts — Cambridge AS & A Level Accounting 9706 Study Notes (2026-2028)

The mirror image of the sales ledger control account — a summary of everything owed to suppliers. Learn what goes on each side of the purchases ledger control account, why it is the reverse of the receivables version, how to find a missing figure such as credit purchases, and its benefits and limitations.

At a glance

The purchases ledger control account (PLCA) summarises all the credit suppliers' accounts (payables).
It is the mirror image of the sales ledger control account.
Credit: opening balance, credit purchases, interest charged by suppliers.
Debit: payments, discount received, purchases returns, contra, closing balance.
A payable is a credit balance — increases are credits, reductions are debits.
Built from the books of prime entry totals — an independent check on the purchases ledger.
A missing figure (e.g. credit purchases) is the balancing figure.

What you’ll learn

Mapped to the Cambridge International A Level 9706 syllabus (2026-2028).

1.4.4 — Understand entries in control accounts.
1.4.4 — Prepare purchases ledger control accounts.
1.4.4 — Understand the benefits and limitations of control accounts.

What goes on each side (the mirror image)

A payable is a credit balance, so increases are credits and reductions are debits.

The purchases ledger control account mirrors all the suppliers' accounts. Because a payable is a credit balance, everything is the reverse of the sales ledger control account:

Debit (decrease payables)	Credit (increase payables)
Cash/bank paid to suppliers	Balance b/d (opening payables)
Discount received	Credit purchases (purchases journal total)
Purchases returns (returns outwards)	Interest charged by suppliers
Contra (set-off with sales ledger)
Balance c/d (closing payables)

Quick checks:

Cash purchases are NOT included — only credit purchases pass through payables.
Discount received and purchases returns are debits here (they reduce what is owed) — the opposite of discount allowed/sales returns in the SLCA.
A contra is a debit in the PLCA (it reduces the payable).

Credit: opening balance, credit purchases, interest charged by suppliers.
Debit: payments, discount received, purchases returns, contra, closing balance.
It is the reverse of the sales ledger control account.
Cash purchases are excluded; only credit purchases appear.

See the full worked example for purchases ledger control accounts →

Comparing the two control accounts

Receivables are a debit balance; payables are a credit balance — everything flips.

It helps to see the two side by side:

Item	Sales ledger control	Purchases ledger control
Opening balance	Debit	Credit
Credit sales / purchases	Debit	Credit
Cash received / paid	Credit	Debit
Discount allowed / received	Credit	Debit
Returns	Credit (sales returns)	Debit (purchases returns)
Contra	Credit	Debit
Closing balance	Debit	Credit

The rule: receivables are an asset (debit balance), so increases are debits; payables are a liability (credit balance), so increases are credits. Once you know which control account you are in, every item follows automatically.

Receivables = asset (debit balance); payables = liability (credit balance).
Every item is on the opposite side in the two control accounts.
Increases to payables are credits; reductions are debits.
Know which control account you are in, then the sides follow.

Finding a missing figure

Enter everything you know; the balancing figure is the unknown (often credit purchases).

As with the receivables control account, the PLCA can find a missing figure — most often credit purchases.

Example — find credit purchases:

Dr	$	Cr	$
Bank	54 000	Balance b/d	9 000
Discount received	1 200	Credit purchases (?)	? = 58 000
Purchases returns	900
Contra	1 100
Balance c/d	9 800
	67 000		67 000

Total debits = 54,000 + 1,200 + 900 + 1,100 + 9,800 = 67,000. Credit purchases = 67,000 − 9,000 = $58,000 (the balancing figure on the credit side).

Enter all known items; the balancing figure is the unknown.
Most often used to find credit purchases.
Include all reductions (payments, discount received, returns, contra).
Same skill as reconstructing the payables account (1.5.2).

See the full worked example for purchases ledger control accounts →

Benefits and limitations

Same strengths and blind spots as the sales ledger control account.

The PLCA has the same benefits and limitations as the SLCA:

Benefits:

An independent check on the purchases ledger (control balance = total of supplier balances).
Localises errors to the purchases ledger.
Gives a quick total of trade payables for the financial statements.
Helps deter and detect fraud (independent totals, segregation of duties).

Limitations:

Does not detect errors that leave the total unchanged (e.g. a purchase posted to the wrong supplier — an error of commission).
Only as reliable as the books of prime entry totals.
Checks the total, not each supplier's balance.

So agreement gives reasonable, not absolute, assurance.

Benefits: independent check, localises errors, quick payables total, fraud control.
Limitation: misses errors within the ledger (e.g. wrong supplier).
Only as reliable as the books of prime entry totals.
Agreement gives reasonable, not absolute, assurance.

See the full worked example for purchases ledger control accounts →

Quick recap

PLCA summarises all credit suppliers; its balance should equal the total of the supplier accounts.
Credit: opening balance, credit purchases, interest charged by suppliers.
Debit: payments, discount received, purchases returns, contra, closing balance.
It is the mirror image of the sales ledger control account (payables = credit balance).
Used to find a missing figure (e.g. credit purchases) as the balancing figure.
Benefits and limitations mirror those of the SLCA.

Memorise this

Verbatim phrases and definitions Cambridge mark schemes credit.

PLCA credit: opening balance, credit purchases, interest charged by suppliers.
PLCA debit: payments, discount received, purchases returns, contra, closing balance.
Cash purchases are NOT in the control account; only credit purchases.
A payable is a credit balance — increases are credits, reductions are debits.

How it’s examined

Frequently tested on Paper 2 and Paper 3: Prepare the purchases ledger control account, Find the credit purchases / closing payables, and State benefits/limitations of control accounts (6-9 marks, point-based). Examiner reports note candidates reversing the sides (treating it like the sales ledger control account) and including cash purchases.

Sources: Cambridge International AS & A Level Accounting 9706 syllabus (2026-2028); 9706 Paper 2 & Paper 3 past papers & mark schemes, 2022-2024; 9706 Examiner Reports, 2022-2024. Last reviewed 2026-06-17.

Take this whole topic with you

Step-by-step worked examples — Purchases Ledger Control Accounts

Step-by-step solutions to past-paper-style questions on purchases ledger control accounts, written exactly the way a tutor would explain them at the board.

Question type:

1Debit or credit side? (5 marks)
Getting startedIdentify & classify• 9706 Paper 1/2 style• control account, AO1
Question
State the side of the purchases ledger control account for each: (i) credit purchases; (ii) discount received; (iii) purchases returns; (iv) payments to suppliers; (v) a contra with the sales ledger. (5 marks)
Step-by-step solution
1. Step 1
  (i) Credit purchases → credit (increases payables).
2. Step 2
  (ii) Discount received → debit (reduces payables).
3. Step 3
  (iii) Purchases returns → debit (reduces payables).
4. Step 4
  (iv) Payments → debit (reduces payables).
5. Step 5
  (v) Contra → debit (set off, reduces payables).
Answer
(i) Cr; (ii) Dr; (iii) Dr; (iv) Dr; (v) Dr.
Examiner tip
Everything is the reverse of the sales ledger control account.
2Prepare the control account (6 marks)
Building confidenceMulti-step problem• control account, AO2
Question
Prepare the purchases ledger control account and find the closing balance: opening payables $12,000; credit purchases$ 78,000; payments $66,000; discount received$ 1,500; purchases returns $1,800. (6 marks)
Step-by-step solution
1. Step 1
  Credit: balance b/d 12,000; credit purchases 78,000 = 90,000.
2. Step 2
  Debit: bank 66,000; discount received 1,500; purchases returns 1,800 = 69,300.
3. Step 3
  Balance c/d = 90,000 − 69,300 = $20,700 (closing payables).
Answer
Closing payables = $20,700.
Examiner tip
Opening balance + credit purchases on the credit; all reductions on the debit.
3Control account with a contra (6 marks)
Building confidenceMulti-step problem• contra, AO2
Question
Opening payables $16,000; credit purchases$ 90,000; payments $78,000; discount received$ 1,900; purchases returns $2,100; contra with sales ledger$ 1,400. Prepare the purchases ledger control account. (6 marks)
Step-by-step solution
1. Step 1
  Credit: balance b/d 16,000; credit purchases 90,000 = 106,000.
2. Step 2
  Debit: bank 78,000; discount received 1,900; purchases returns 2,100; contra 1,400 = 83,400.
3. Step 3
  Balance c/d = 106,000 − 83,400 = $22,600.
Answer
Closing payables = $22,600.
Examiner tip
The contra is a debit here (it reduces the payable).
4Control account with supplier interest (6 marks)
Building confidenceMulti-step problem• control account, AO2
Question
Opening payables $9,000; credit purchases$ 54,000; payments $48,000; discount received$ 1,200; purchases returns $1,100; interest charged by a supplier for late payment$ 300. Prepare the purchases ledger control account. (6 marks)
Step-by-step solution
1. Step 1
  Credit: balance b/d 9,000; credit purchases 54,000; interest charged 300 = 63,300.
2. Step 2
  Debit: bank 48,000; discount received 1,200; purchases returns 1,100 = 50,300.
3. Step 3
  Balance c/d = 63,300 − 50,300 = $13,000.
Answer
Closing payables = $13,000.
Examiner tip
Interest charged BY a supplier increases the payable (a credit).
5Find the credit purchases (6 marks)
StretchMulti-step problem• missing figure, AO2
Question
Opening payables $14,000; closing payables$ 17,500; payments $120,000; discount received$ 2,600; purchases returns $2,400; contra$ 1,500. Calculate the credit purchases for the year. (6 marks)
Step-by-step solution
1. Step 1
  Debit side = payments 120,000 + discount received 2,600 + returns 2,400 + contra 1,500 + closing 17,500 = 144,000.
2. Step 2
  Credit side = opening 14,000 + credit purchases (?).
3. Step 3
  Credit purchases = 144,000 − 14,000 = $130,000 (balancing figure).
Answer
Credit purchases = $130,000.
Examiner tip
Credit purchases is the credit-side balancing figure; include closing balance on the debit side.
6Control account with a debit balance (6 marks)
StretchMulti-step problem• control account, AO2
Question
Opening: payables (credit) $13,000 and one supplier with a debit balance of$ 300 (overpayment). Credit purchases $72,000; payments$ 64,000; discount received $1,400; purchases returns$ 1,200. Closing debit balances total $250. Calculate the closing credit balance of payables. (6 marks)
Step-by-step solution
1. Step 1
  Credit side: balance b/d (credit) 13,000; credit purchases 72,000; closing debit balance c/d 250 = 85,250.
2. Step 2
  Debit side: opening debit balance b/d 300; bank 64,000; discount received 1,400; purchases returns 1,200; closing credit balance c/d (?).
3. Step 3
  Known debit items (excl. closing) = 300 + 64,000 + 1,400 + 1,200 = 66,900.
4. Step 4
  Closing credit payables = 85,250 − 66,900 = $18,350.
Answer
Closing credit payables = $18,350 (plus debit balances$ 250).
Examiner tip
Show the opening and closing debit balances on the opposite sides.
7Effect of an error (5 marks)
StretchMulti-step problem• control account, AO2
Question
A purchases ledger control account showed closing payables of $25,000, but the purchases returns of$ 800 had been omitted. State the corrected closing balance and the effect of the error. (5 marks)
Step-by-step solution
1. Step 1
  Purchases returns are a debit in the control account (they reduce payables).
2. Step 2
  Adding the missing $800 debit reduces the closing balance.
3. Step 3
  Corrected closing payables = 25,000 − 800 = $24,200.
4. Step 4
  The original balance overstated payables (a liability) by $800.
Answer
Corrected closing payables = $24,200 (originally overstated by$ 800).
Examiner tip
Omitting a debit overstates the closing payables.
8Localising a purchases ledger error (4 marks)
StretchWord problem• control account, AO3
Question
The purchases ledger control account balance is $31,000, but the total of the individual supplier balances is$ 31,750. Explain what this tells the business. (4 marks)
Step-by-step solution
1. Step 1
  The two should be equal; a $750 difference means an error in the purchases ledger (or the control totals).
2. Step 2
  The disagreement localises the error to the purchases ledger.
3. Step 3
  The business should investigate the $750 — checking additions, postings and any omitted items.
4. Step 4
  Once found, the relevant account is corrected so the two agree.
Answer
A $750 difference signals an error in the purchases ledger; the business investigates and corrects it.
Examiner tip
The control account narrows the search to the purchases ledger.
9Limitation of the control account (4 marks)
StretchWord problem• limitations, AO3
Question
Explain why a purchases ledger control account that agrees with the purchases ledger does not prove the ledger is error-free. (4 marks)
Step-by-step solution
1. Step 1
  Some errors leave the total unchanged — e.g. a purchase posted to the wrong supplier (commission).
2. Step 2
  Both the control total and the ledger total stay correct in total, so they agree.
3. Step 3
  The control account checks the total, not the individual supplier balances.
4. Step 4
  So agreement gives reasonable, not absolute, assurance.
Answer
Errors that don't change the total (e.g. wrong supplier) leave the control agreeing; it checks the total, not each account.
Examiner tip
Same limitation as the sales ledger control account.
10Both control accounts together (5 marks)
StretchWord problem• control account, AO3
Question
Explain why a contra entry appears in BOTH the sales ledger control account and the purchases ledger control account, and on which side of each. (5 marks)
Step-by-step solution
1. Step 1
  A contra arises when the same party is both a customer and a supplier, and the balances are set off.
2. Step 2
  It reduces the receivable → a credit in the sales ledger control account.
3. Step 3
  It reduces the payable → a debit in the purchases ledger control account.
4. Step 4
  So the same contra appears on opposite sides of the two control accounts, for the same amount.
5. Step 5
  This reflects the single transaction of offsetting what is owed each way.
Answer
A contra reduces both balances: a credit in the SLCA and a debit in the PLCA, for the same amount.
Examiner tip
The contra reduces a receivable (credit SLCA) and a payable (debit PLCA).

Model Answers — Purchases Ledger Control Accounts

High-scoring sample answers for purchases ledger control accounts on the Cambridge IGCSE paper, with examiner-style notes mapping each response to the mark scheme and assessment objectives.

Question 1
9706 Paper 2 style4 marks
Q (4 marks). State whether each appears on the debit or credit side of the purchases ledger control account: (a) credit purchases; (b) discount received; (c) purchases returns; (d) interest charged by a supplier.
Model answer
(a) Credit purchases → credit. (b) Discount received → debit. (c) Purchases returns → debit. (d) Interest charged by a supplier → credit (increases the amount owed).
Why this scores
Marking (point-based, 4). 1 mark each. Increases to payables are credits; reductions are debits.
Question 2
9706 Paper 2 style5 marks
Q (5 marks). Prepare the purchases ledger control account and find the closing balance: opening payables $11,000; credit purchases$ 64,000; payments $55,000; discount received$ 1,300; purchases returns $1,400.
Model answer
Purchases ledger control account

Dr $ Cr $
Bank 55 000 Balance b/d 11 000
Discount received 1 300 Credit purchases 64 000
Purchases returns 1 400
Balance c/d 17 300
75 000 75 000

Closing payables = $17,300.
Why this scores
Marking (point-based, 5). Opening + credit purchases on credit (2); payments, discount, returns on debit (2); balance c/d $17,300 (1).
Question 3
9706 Paper 2/3 style6 marks
Q (6 marks). Prepare the purchases ledger control account: opening payables $22,000; credit purchases$ 130,000; payments $112,000; discount received$ 2,800; purchases returns $2,400; contra with sales ledger$ 1,600; interest charged by a supplier $200.
Model answer
Purchases ledger control account

Dr $ Cr $
Bank 112 000 Balance b/d 22 000
Discount received 2 800 Credit purchases 130 000
Purchases returns 2 400 Interest charged 200
Contra 1 600
Balance c/d 33 400
152 200 152 200

Closing payables = $33,400.
Why this scores
Marking (point-based, 6). Credits: opening, credit purchases, interest (2). Debits: bank, discount, returns, contra (3). Balance c/d $33,400 (1).
Question 4
9706 Paper 2/3 style6 marks
Q (6 marks). Calculate the credit purchases: opening payables $18,000; closing payables$ 21,000; payments $140,000; discount received$ 3,400; purchases returns $2,900; contra$ 1,700.
Model answer
Reconstruct the control account; credit purchases is the balancing figure.

Debit side = payments 140,000 + discount 3,400 + returns 2,900 + contra 1,700 + closing balance 21,000 = 169,000. Credit side = opening 18,000 + credit purchases. Credit purchases = 169,000 − 18,000 = $151,000.
Why this scores
Marking (point-based, 6). All debit items incl. closing balance (3); opening (1); arithmetic (1); credit purchases $151,000 (1).
Question 5
9706 Paper 3 style6 marks
Q (6 marks). Prepare the purchases ledger control account, showing both balances: opening credit balances $30,000 and debit balances$ 400; credit purchases $180,000; payments$ 160,000; discount received $4,500; purchases returns$ 3,800; closing debit balances $500.
Model answer
Purchases ledger control account

Dr $ Cr $
Balance b/d (debit) 400 Balance b/d (credit) 30 000
Bank 160 000 Credit purchases 180 000
Discount received 4 500 Balance c/d (debit) 500
Purchases returns 3 800
Balance c/d (credit) 41 800
210 500 210 500

Closing payables: credit balances $41,800 (and debit balances $500).
Why this scores
Marking (point-based, 6). Opening credit + debit balances on opposite sides (2); credit purchases credit (1); reductions debit (2); closing credit balance $41,800 (1).
Question 6
9706 Paper 3 style5 marks
Q (5 marks). A purchases ledger control account was prepared showing closing payables of $36,000. It was then found that (a) discount received of$ 600 had been omitted and (b) the purchases journal had been overcast by $900. Calculate the corrected closing payables.
Model answer
(a) Discount received omitted → discount received is a debit (reduces payables) → reduce payables by $600.

(b) Purchases journal overcast by $900 → credit purchases (a credit) too high → reduce payables by $900.

Corrected closing payables = 36,000 − 600 − 900 = $34,500.
Why this scores
Marking (point-based, 5). Omitted discount received reduces payables $600 (2); overcast purchases reduces payables$ 900 (2); corrected $34,500 (1).
Question 7
9706 Paper 2/3 style4 marks
Q (4 marks). Explain why credit purchases appear on the credit side of the purchases ledger control account but credit sales appear on the debit side of the sales ledger control account.
Model answer
A trade payable is a liability (a credit balance), so anything that increases the amount owed to suppliers — including credit purchases — is recorded on the credit side of the purchases ledger control account.

A trade receivable is an asset (a debit balance), so anything that increases the amount owed by customers — including credit sales — is recorded on the debit side of the sales ledger control account.

In short, increases follow the natural side of the balance: credits for a liability (payables), debits for an asset (receivables).
Why this scores
Marking (point-based, 4). Payable = liability/credit balance → credit purchases credited (~2); receivable = asset/debit balance → credit sales debited (~2).
Question 8
9706 Paper 3 evaluation style6 marks
Q (6 marks). Discuss the usefulness of preparing a purchases ledger control account.
Model answer
How it is useful.

It provides an independent check on the purchases ledger: the control balance should equal the total of the individual supplier balances, so a difference reveals an error.

It localises errors to the purchases ledger, narrowing the search.

It gives a quick total of trade payables for the financial statements.

Built from independent totals (often by a different person), it helps deter and detect fraud (segregation of duties).

Its limitations.

It does not detect errors that leave the total unchanged, such as a purchase posted to the wrong supplier (error of commission).

It is only as reliable as the books of prime entry totals.

It checks the total, not each individual supplier balance.

Conclusion. A purchases ledger control account is a valuable check that improves accuracy and supports fraud control, but agreement gives reasonable, not absolute, assurance, so it should be used alongside other procedures.
Why this scores
Marking (point-based, ~6). Benefits (check/localise/quick total/fraud) (~3); limitations (wrong supplier / relies on totals) (~2); conclusion (~1).
Question 9
9706 Paper 2/3 style4 marks
Q (4 marks). A business owes a supplier $2,000 and the same business (as a customer) owes the supplier's firm$ 1,200. The two agree a contra. Explain the entries in both control accounts.
Model answer
The smaller amount, $1,200, is set off. The contra:

reduces the receivable (the $1,200 owed to the business) → a credit of $1,200 in the sales ledger control account; and

reduces the payable (the $2,000 owed by the business) → a debit of $1,200 in the purchases ledger control account.

After the contra, the business still owes the supplier $800 (2,000 − 1,200) in the purchases ledger.
Why this scores
Marking (point-based, 4). Set off the smaller $1,200 (~1); credit SLCA (~1.5); debit PLCA (~1.5).
Question 10
9706 Paper 2 style2 marks
Q (2 marks). State two reasons why a business prepares a purchases ledger control account.
Model answer
To check the accuracy of the purchases ledger (the control balance should equal the total of the supplier accounts).

To provide a quick total of trade payables for the financial statements (also: to localise errors and deter fraud).
Why this scores
Marking (point-based, 2). 1 mark each valid reason.

Dr	$	Cr	$
Bank	55 000	Balance b/d	11 000
Discount received	1 300	Credit purchases	64 000
Purchases returns	1 400
Balance c/d	17 300
	75 000		75 000

Dr	$	Cr	$
Bank	112 000	Balance b/d	22 000
Discount received	2 800	Credit purchases	130 000
Purchases returns	2 400	Interest charged	200
Contra	1 600
Balance c/d	33 400
	152 200		152 200

Dr	$	Cr	$
Balance b/d (debit)	400	Balance b/d (credit)	30 000
Bank	160 000	Credit purchases	180 000
Discount received	4 500	Balance c/d (debit)	500
Purchases returns	3 800
Balance c/d (credit)	41 800
	210 500		210 500

Key Definitions and Keywords — Purchases Ledger Control Accounts

Definitions to memorise and the exact keywords mark schemes credit for purchases ledger control accounts answers — sharpened from recent examiner reports for the 2026 Cambridge IGCSE sitting.

Purchases ledger control account
Examiner keyword
A summary account that mirrors all the credit suppliers' accounts; its balance should equal the total of the individual balances in the purchases ledger.
Credit purchases
Examiner keyword
Purchases made on credit (from the purchases journal total); credited to the control account. Cash purchases are excluded.
Discount received
Examiner keyword
Cash discount from suppliers for prompt payment; debited to the control account (reduces payables).
Purchases returns (returns outwards)
Examiner keyword
Goods returned to suppliers; debited to the control account (reduces payables).
Contra (set-off)
Examiner keyword
Offsetting an amount owed to a supplier against an amount owed by the same party as a customer; debited to the purchases ledger control account.
Trade payable
Examiner keyword
An amount owed to a supplier; a credit balance. Increases are credits and reductions are debits.
Balancing figure
The figure needed to balance the control account; used to find a missing item such as credit purchases.

Common Mistakes and Misconceptions — Purchases Ledger Control Accounts

The traps other students keep falling into on purchases ledger control accounts questions — taken from recent Cambridge IGCSE examiner reports and mark schemes — and how to avoid them.

✕Treating the PLCA like the sales ledger control account
9706 Examiner Reports
Why it happens
Carrying over the receivables layout.
How to avoid it
A payable is a CREDIT balance, so everything is reversed: credit purchases are a credit; payments, discounts and returns are debits.
✕Including cash purchases
9706 Examiner Reports
Why it happens
Treating all purchases the same.
How to avoid it
Only CREDIT purchases pass through payables. Cash purchases never enter the control account.
✕Putting the contra on the credit side
9706 Examiner Reports
Why it happens
Confusing it with purchases.
How to avoid it
A contra REDUCES the payable, so it is a DEBIT in the purchases ledger control account.
✕Treating interest charged by a supplier as a debit
9706 Examiner Reports
Why it happens
Associating interest with an expense paid.
How to avoid it
Interest charged BY a supplier INCREASES the amount owed → a CREDIT in the control account.
✕Omitting discounts, returns or contra
9706 Examiner Reports
Why it happens
Focusing only on purchases and payments.
How to avoid it
Include ALL items that change payables, or the balance/missing figure will be wrong.
✕Believing agreement guarantees an error-free ledger
9706 Examiner Reports
Why it happens
The totals match.
How to avoid it
Errors that don't change the total (e.g. wrong supplier) leave the control agreeing; it gives reasonable, not absolute, assurance.

Purchases Ledger Control Accounts

Detailed Study Notes

At a glance

What you’ll learn

Quick recap

Memorise this

How it’s examined

Take this whole topic with you

1Debit or credit side? (5 marks)

2Prepare the control account (6 marks)

3Control account with a contra (6 marks)

4Control account with supplier interest (6 marks)

5Find the credit purchases (6 marks)

6Control account with a debit balance (6 marks)

7Effect of an error (5 marks)

8Localising a purchases ledger error (4 marks)

9Limitation of the control account (4 marks)

10Both control accounts together (5 marks)

Purchases ledger control account

Credit purchases

Discount received

Purchases returns (returns outwards)

Contra (set-off)

Trade payable

Balancing figure

✕Treating the PLCA like the sales ledger control account

✕Including cash purchases

✕Putting the contra on the credit side

✕Treating interest charged by a supplier as a debit

✕Omitting discounts, returns or contra

✕Believing agreement guarantees an error-free ledger