Debit Balance as Opening Inventory in Stationery Account Steps: - Note the date: 1 January 2021 marks the start of Jamal's financial year, following 31 December closure. - Interpret "brought down": This means carrying forward the closing balance from the prior year (2020) to the new trial balance. - Analyze stationery account: It records purchases (debits); end-of-year debit balance reflects unused stationery after adjusting for consumption. - Conclude representation: The 1 January 2021 debit balance is the opening inventory for 2021, equaling 2020's closing stock. Why D is correct: - Per accounting principles, a debit balance in a consumables account like stationery at period start represents opening inventory (asset), as defined in the matching principle for deferring unused costs. Why the others are wrong: - A: Amount owing is a liability (credit balance in payables), not a debit in the stationery asset/expense account. - B: Payments in 2020 are debited during the year but netted against usage; the balance is not payments alone. - C: Cost used in 2020 is expensed to profit/loss, leaving only unused inventory as the carried-forward …