Closing balance on purchases ledger control account

Steps:

• Start with opening balance of $71,000.
• Add credit purchases of $149,000 to get total owed before adjustments.
• Subtract purchase returns of $3,000 to reduce amount owed.
• Subtract payments to payables of $13,200 and contra with sales ledger of$1,600 to arrive at closing balance of $82,500.

Why B is correct:

• Purchases ledger balance follows the formula: opening + credit purchases – returns – payments – contra, reflecting total creditors after all adjustments.

Why the others are wrong:

• A: Subtracts an extra $2,000, perhaps double-counting part of returns.
• C: Omits subtracting the $1,600 contra entry.
• D: Omits subtracting both returns ($3,000) and part of payments.

Final answer: B