Which ledger would you consult to see how much is owed to suppliers?

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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

Which ledger would you consult to see how much is owed to suppliers?

Explanation:
When you want to know how much is owed to suppliers, you check the payables ledger. This subsidiary ledger records each supplier’s balance and shows the total outstanding amount you owe. It works alongside the payables control account in the general ledger, which sums up those individual balances. The other ledgers serve different purposes: the receivables ledger tracks what customers owe you, the general ledger contains all accounts at a summary level, and the cash book records cash transactions rather than amounts owed. So the payables ledger is the correct place to see how much you owe to suppliers.

When you want to know how much is owed to suppliers, you check the payables ledger. This subsidiary ledger records each supplier’s balance and shows the total outstanding amount you owe. It works alongside the payables control account in the general ledger, which sums up those individual balances. The other ledgers serve different purposes: the receivables ledger tracks what customers owe you, the general ledger contains all accounts at a summary level, and the cash book records cash transactions rather than amounts owed. So the payables ledger is the correct place to see how much you owe to suppliers.

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