What does the subsidiary payables ledger contain?

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Prepare for the AAT Level 2 Bookkeeping Test with flashcards and multiple choice questions. Each question includes hints and explanations to improve your understanding and readiness for the exam.

Multiple Choice

What does the subsidiary payables ledger contain?

Explanation:
The subsidiary payables ledger contains the individual trade payables for each supplier. It records what is owed to each creditor on a supplier-by-supplier basis, including invoices, payments, and any credits, so you can see the balance with every supplier. The sum of all these individual balances equals the total trade payables shown in the general ledger control account. Bank balances and inventory records belong in other ledgers, not in the payables subledger.

The subsidiary payables ledger contains the individual trade payables for each supplier. It records what is owed to each creditor on a supplier-by-supplier basis, including invoices, payments, and any credits, so you can see the balance with every supplier. The sum of all these individual balances equals the total trade payables shown in the general ledger control account. Bank balances and inventory records belong in other ledgers, not in the payables subledger.

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