Paper 1 · November 2020 · Division of the ledger
The following ledger account was taken from the books of a trader.
Purchases Account
Debit side: 2017 May 7 Cash 1 200; total $1 800
Credit side: 2017 May 31 Income statement $1 800; total $1 800
In which ledger is this account found?
AGeneral ledger.
BPrivate ledger.
CTrade payables ledger.
DTrade receivables ledger.
Explanation
Purchases is a nominal account and nominal accounts are kept in the general ledger; the payables and receivables ledgers hold personal accounts only.
ZIMSEC Principles of Accounting 4051/1, November 2020, Q7