What is typically excluded from the purchase ledger?

The purchase ledger primarily focuses on credit transactions with suppliers rather than cash purchases. It records amounts owed to suppliers, outstanding invoices, supplier payment history, and other credit-related transactions. Cash purchases, on the other hand, are usually recorded in a different ledger or cash book since they involve immediate payment and do not create a liability for the business. By excluding cash purchases, the purchase ledger maintains clarity about the company's obligations and ensures that it accurately tracks credit transactions and liabilities.