The periodic sum of the purchase journal is transferred to____________?
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Answer: B. Purchase A/c
Explanation
The periodic aggregate total of the purchase journal is posted directly to the debit side of the Purchase Account. Individual merchandise purchases on credit are accumulated in the journal and transferred periodically to the ledger. Debiting the Purchase Account increases total recognized inventory acquisition costs for the fiscal period. The purchase journal acts as a specialized chronological record for all goods acquired on credit from suppliers. Periodic batch posting simplifies general ledger maintenance by eliminating the need for daily individual entries. Purchase accounts normally maintain debit balances that reflect the accumulation of business expenses.
Wholesale distributors process high volumes of supplier invoices through specialized purchase journals daily. Systematic ledger postings ensure inventory acquisition costs are captured accurately before financial statement preparation. Auditors review purchase journal summaries to verify the completeness of recorded business liabilities and expenses. Purchase register is often synonymous with the journal itself rather than the final general ledger destination. Cash purchase A/c is incorrect because cash acquisitions are recorded directly in the cash payment journal. Credit purchase A/c is less standard because the main ledger account is simply titled the Purchase Account.
- Subject
- Accounting and Finance
- Category
- Accounting
- Topic
- —
- Difficulty
- medium
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