What is Purchases Subsdiary Ledger

A Purchases Subsidiary or Subledger shows a number of credit purchases accounts balances that are created when the company purchases goods or services from different suppliers or vendors during the accounting period. The total of balances of these purchases subsidiary ledgers are finally transferred to Purchases Ledger or Purchases Control Ledger Account.

The purchases subsidiary ledgers and purchases control ledger record only Credit Purchases while Cash Purchases is recorded only in the Cash Book.