Normal balance of trading accounts in trial balance

Steps:

• Recall that trial balance places debit balances (expenses, assets) in the debit column and credit balances (incomes, liabilities, contra-debits) in the credit column.
• Classify each option: expenses debit, purchase reductions credit, sales reductions debit.
• Purchases outwards refers to adjustments reducing purchase costs, credited in entries.
• Confirm the account with inherent credit balance goes to credit column.

Why C is correct:

• Purchases outwards is a contra-purchase account that reduces gross purchases, recorded as a credit per double-entry rules, yielding a credit balance.

Why the others are wrong:

• A. Carriage inwards is a direct expense on purchases, debited with debit balance.
• B. Purchases returns, while contra, is adjusted as debit in net presentation here.
• D. Sales returns reduces sales income, debited with debit balance.

Final answer: C