Correcting errors in purchases ledger control account balance Steps:

• Start with incorrect credit balance of $15,830.
• Error 1: Omitted refunds $270 mean missing credit entry (increasing liability), so balance understated by$270; add $270.
• Error 2: Credits received $480 (should be debit side) posted to credit side instead, overstating balance by 2 ×$480 = 960.
• Corrected balance: $15,830 +$270 – $960 =$15,140.

Why C is correct:

• Applies double-effect rule for wrong-side posting (overstatement by twice the amount) and single-effect for omission, per control account reconciliation principles.

Why the others are wrong:

• A subtracts $270 (treating omission as overstatement) +$960, ignoring omission direction.
• B subtracts $270 +$480, ignoring double effect of misposting.

Final answer: C