The item on the credit side of the purchases ledger control account includes?

Given:

I. Cash refunds
II. Debit note issued
III. Dishonored cheque
IV. Purchases

A. I, II and III only
B. I and II only
C. III and IV only
D. I, III, and IV only

Correct Answer:

Option D – I, III, and IV only

Explanation

Purchases control account it is also called total creditor control account
I, II & IV: some of the items that appear on the credit side of the purchases ledger are cash refund to the supplier, dishonored cheque by banks and credit purchases