Concept:The purchases are found by preparing a creditors control account or using its balancing formula.
Explanation:Opening creditors at 1/1/10 = Le 3,000.
Payments made during 2010 = Le 29,000.
Closing creditors at 31/12/10 = Le 5,500.
The creditors account balance is:
Opening creditors + Purchases − Payments = Closing creditors.
So, Purchases = Closing creditors + Payments − Opening creditors.
Purchases =
5,500+29,000−3,000.
Purchases = Le 31,500.
Answer:C. Le 31,500