Concept:The “Sales ledger #1,200” entry in the Purchase Ledger Control Account is a contra/set-off entry that arises when the same party is both a supplier and a customer.
Explanation:A Purchase Ledger Control Account records the amounts owed to suppliers for credit purchases.
When a supplier is also a debtor in the Sales Ledger, the amount in the Sales Ledger is set off against what the business owes that supplier.
Thus
#1,200 taken from the Sales Ledger is not cash paid to a supplier.
It is not cash purchases, because cash purchases do not pass through the Purchase Ledger Control Account.
It is also not a credit purchase; credit purchases appear on the credit side of the Purchase Ledger Control Account.
The
#1,200 represents the amount due from the supplier, which is used to reduce the balance due to the supplier.
Answer:B. amount due from suppliers