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HMRC internal manual

Enquiry Manual

Examining Accounts: Accounting Systems: Sales/Purchase Ledger

The sales and purchase ledgers contain separate accounts for each customer and supplier. One side of each account comprises postings from the appropriate day book (debits in sales accounts and credits in purchase accounts). The other side has postings of ‘returns’. Receipts in respect of sales accounts will be credited and payment for purchases debited with the corresponding double-entry being in the cash book. Customers may be sent a statement at regular intervals, perhaps monthly. This will be a copy of the sales ledger account. Conversely, such statements are received from suppliers and should be checked and reconciled with the relevant purchase ledger account before payment.