Where are the individual trade payables recorded?

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Study for the AAT Level 2 Introduction to Bookkeeping Test. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your exam!

Multiple Choice

Where are the individual trade payables recorded?

Explanation:
Individual trade payables are recorded in the subsidiary payables ledger (the supplier’s ledger). This keeps track of each supplier and the amounts you owe to them, showing the balances for every individual creditor. The total of these balances is then summarized in the payables control account in the general ledger. The bank ledger records cash movements, not what you owe; the sales ledger tracks amounts owed to you by customers, not what you owe to suppliers.

Individual trade payables are recorded in the subsidiary payables ledger (the supplier’s ledger). This keeps track of each supplier and the amounts you owe to them, showing the balances for every individual creditor. The total of these balances is then summarized in the payables control account in the general ledger. The bank ledger records cash movements, not what you owe; the sales ledger tracks amounts owed to you by customers, not what you owe to suppliers.

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