Debit Balance In Creditors Control Account
The normal or usual b ala nce of Creditors Control Ledger Account or Accounts Payab le Control Ledger Account is Credit. However, there are some reaso ns, suc h as overpayme nts to suppliers, creditors or vendors, wrong amounts entered, etc., due to w hich de b it b ala nce takes place. All Creditors Sub sidiary Ledgers or Accounts Payable Subsidiary Ledger Accounts are prepared separately to avoid detailed of information in one single creditors control ledger account. T he sum of all of the i ndividuals suppliers are summed up in one creditors control ledger account. Example: Suppose a company has purchased goods from 5 suppliers. The sum of closi ng b ala nces of eac h creditors su b ledgers give a fi nal deb it b ala nce. T he n in t hat case, Creditors Co ntrol Ledger Account s hows de b it b ala nce w h ic h is s how n in t he Balance Sheet with the accou nt’s name “Advances To Suppliers” as a Current Asset .