Concept:The purchases ledger control account is also called the total creditors control account.
Its credit side records all transactions that increase the amount owed to suppliers.
Explanation:Credit purchases, shown as
IV, increase the amount payable to suppliers, so they are posted to the credit side.
Cash refunds, shown as
I, are refunds received back from suppliers; these refunds are credited to suppliers because they reduce what the supplier owes or increase the balance owed to them.
A dishonored cheque, shown as
III, reverses an earlier payment made to a supplier, meaning the supplier is still owed, so it is also credited.
A debit note issued, shown as
II, is raised when goods are returned to a supplier or when a supplier overcharges.
This reduces the amount owed, so it is recorded on the debit side of the purchases ledger control account, not the credit side.
Answer:The items on the credit side are
I,
III and
IV only.
Therefore, the correct option is
D.