Prepare the Creditors Control Account and calculate the total purchases for the period.

The Creditors Control Account (also known as Trade Payables Control Account) is used to determine the total credit purchases for the period.

• Debit entries (decrease in creditors):
  • Returns Outwards: $75
  • Cash payment to creditors for goods supplied: $5,625
  • Bills Payable: $1,702
  • Discount Received: $527
  • Contra entry (amount due from debtors set off against amount due to him for supplies): $340
  • Closing Balance (31/12/2024): $1,339
• Credit entries (increase in creditors):
  • Opening Balance (1/1/2024): $1,226
  • Purchases (balancing figure)

We balance the Creditors Control Account to find the total purchases.

$$\begin{align*} \text{Total Debits} &= \$75 + \$5,625 + \$1,702 + \$527 + \$340 + \$1,339 \\ &= \$9,608 \\ \\ \text{Total Credits} &= \text{Opening Balance} + \text{Purchases} \\ \$9,608 &= \$1,226 + \text{Purchases} \\ \text{Purchases} &= \$9,608 - \$1,226 \\ &= \boxed{\mathbf{\$8,382}}\end{align*}$$