What is the purpose of the payables ledger control account?

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

Answer: (A)

The payables ledger control account shows the total amount the business owes to suppliers, summarized from the individual supplier accounts. It acts as a single, controllable figure in the general ledger that you can compare with the total of the supplier sub-ledger to ensure everything adds up. It goes up when you record purchases on credit and goes down when you make payments (or when discounts are taken). This makes it a useful tool for reconciliation and accuracy.

It isn’t about cash paid (that would be reflected in the cash book), nor does it hold supplier contact details (those are in the supplier records), nor does it represent the value of inventory (that relates to purchases and stock).