What is a purchase ledger?

Definition of a purchase ledger

A business's purchase ledger is a list of all the purchase invoices it's ever received from its suppliers, and when they were paid.

Before computerised accounts came into being, a business's clerks would write up its purchase invoices, and the payments made for them, in a thick leather-bound book. That's why this list is called the "purchase ledger"!

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The total amount of invoices in the purchase ledger that haven't been paid yet is the business's figure for 'trade creditors'.

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