The Bought Ledger, also known as Creditors’ Ledger, is a sub-ledger accounting record that details all the credit purchases a company makes from its suppliers, providing a clear view of all owed amounts and due dates.
Creditors are individuals or entities to whom an organization or an individual owes money, such as unpaid suppliers of raw materials. Effective management of creditor payments is essential for maintaining credit periods and securing prompt-payment discounts.
A creditors' ledger is a memorandum ledger account used to track individual creditors' accounts, contributing to internal control by recording and comparing transactions with the nominal ledger.
A ledger is a collection of accounts of a similar type, traditionally maintained in a large book or, in modern systems, as computer records. Common types of ledgers include the nominal ledger, debtors' ledger, and creditors' ledger.
A personal ledger is an accounting record containing a summary of all transactions related to individuals or specific entities such as debtors and creditors.
The purchases ledger, also known as the creditors' ledger, is a detailed accounting record that tracks all the credit purchases a company makes. It manages company liabilities by listing every individual supplier from whom the company buys goods or services on credit.
The purchases ledger control account is a summary account within the general ledger used to record the total amount owed to suppliers and other creditors for goods or services received on credit.
A Returns Outwards Book, also known as the Purchase Returns Book, is a book of prime entry utilized to record any returns of goods to suppliers. It ensures systematic tracking of returned items, allowing accurate updates to individual creditor's accounts and overall accounting records.
