What type of accounts are maintained under Purchases ledger? What entries are posted in purchase ledger? Also what is the difference between purchases ledger and purchases account?
First things first, we need to understand and be very clear that ledgers and accounts are two different things and are NOT same.
The difference between ledger and account, briefly, is that ledger is an accounting book which contains many accounts in it. To learn in detail about the difference between the accounts and ledgers please read What is the difference between Account and Ledger?
Purchases ledger also known as Creditor’s ledger or Payables ledger is a ledger in which individual accounts of entity’s such personnel are kept from which entity has bought something on credit basis.
Grouping creditors’ accounts at one place (purchases ledger) serves a great deal in one way i.e. personal accounts of such people to whom entity owes i.e. to whom entity is liable or simply creditors are not mixed and mingled with personal accounts such people who owes to entity i.e. those who are liable to entity or simply debtors. This way entity can easily follow up dates and amounts payable and receivable to and from different people.
As purchase ledger only contains the creditors’ accounts therefore, only entries related to credit purchases are recorded under purchases ledger.
However, students must not confuse purchase ledger with purchase account which are two completely different things. In order to read about the difference in purchase account and purchase ledger in detail please read: What is the difference between Purchase ledger and Purchase account?