Chioma Enterprises had the following data for November 2023: Opening creditors balance ₦35,000; Credit purchases ₦88,000; Cash paid to creditors ₦72,000; Returns outwards ₦6,400; Discount received ₦2,100; Contra entries with Sales Ledger ₦1,500. What is the closing balance of the Purchases Ledger Control Account?

Closing balance = Opening balance ₦35,000 + Credit purchases ₦88,000 − Cash paid ₦72,000 − Returns outwards ₦6,400 − Discount received ₦2,100 − Contra entries ₦1,500 = ₦41,000. Contra entries (set-offs) reduce the creditors balance because they offset amounts owed by the same party in the sales ledger against amounts owed to them in the purchases ledger.