Balances in Purchases Ledger Control Account

Steps:

• Identify the account type: Purchases ledger control account tracks amounts owed to suppliers (creditors).
• Determine balance nature: Normal credit balance indicates net payables.
• Analyze closing entry: For credit balance, "Balance c/d" is entered on debit side to equalize totals.
• Analyze opening entry: "Balance b/d" is entered on credit side next period, matching the credit balance.

Why D is correct:

• In purchases ledger control account, both the debit-side Balance c/d and credit-side Balance b/d represent the net credit balance, defined as amounts owing to suppliers (customers in this context).

Why the others are wrong:

• A: Applies to sales ledger control account with debit balances (owing from customers).
• B: Mixes receivables (owing from) with payables (owing to), ignoring uniform credit balance.
• C: Reverses the mix, still not matching the consistent payables representation.

Final answer: D