A debit balance of N420 on the purchase ledger control account means that as at that date............

A.

Trade creditors have been paid by N420

B.

Trade creditors are owed N420

C.

Goods returned to trade creditors amounted to N420

D.

Total supplies from trade creditors amounted to N420

Correct answer is A

The purchase ledger control account is part of the balance sheet and shows at any given time how much you owe to your suppliers. It is credited if its balance increases & debited if its balance decreases.