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SSC Financial and Cost Accounting P-1 QUESTION #9622
Question 1
In a Creditors Control Account, which of the following items would appear on the DEBIT side?
  • Credit purchases for the period
  • Opening balance of creditors
  • Purchase returns to suppliers✔️
  • Closing balance of creditors
Correct Answer Explanation
The Creditors Control Account credit side records: opening balance and credit purchases (amounts owed to suppliers). The debit side records: purchase returns, payments made to suppliers, discounts received, and the closing balance (carried forward). Purchase returns reduce what is owed to creditors, hence they appear on the debit side.