Question

Find out the credit purchase from the following:

$\begin{array}{cc}\text{Items}& \text{Amt. (Rs.)}\\ \text{Balance of creditors April 1, 2004}& 45,000\\ \text{Balance of creditors March 31, 2005}& 36,000\\ \text{Cash paid to creditors}& 1,80,000\\ \text{Cheque issued to crediotors}& 60,000\\ \text{Cash purchases}& 75,000\\ \text{Discount received from creditors}& 5,400\\ \text{Discount allowed}& 5,000\\ \text{Bills payable given to creditors}& 12,750\\ \text{Return outwards}& 7,500\\ \text{Bills payable dishonoured}& 3,000\\ \text{Bills receivable endorsed to creditors}& 4,500\\ \text{Bills receivable endorsed to creditors dishonoured}& 1,800\\ \text{Return inwards}& 3,700\end{array}$

Answer 1

To get the purchase (credit) figure,it would be appropriate to prepare Creditor's Account.

$\text{Dr.}\text{Creditor's Account}\text{Cr.}\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}\\ & & & & 2005& & & \\ & \text{Cash}& & 1,80,000& \text{Apr 1}& \text{Balance b/d}& & 45,000\\ & \text{Bank (cheque)}& & 60,000& & \text{Bills Payable (Dishonoured)}& & 3,000\\ & \text{Discount Received}& & 5,400& & \text{Bills Receivable}& & 1,800\\ & \text{Bills Payable (accepted)}& & 12,750& & \text{(Endorsed Dishonured)}& & \\ & \text{Return Outward}& & 7,500& & \text{Purchases (Credit)}& & 2,56,350\\ & \text{Bills Receivable}& & 4,500& & \text{(Balancing Figure)}& & \\ & \text{(Endorsed to creditors)}& & & & & & \\ & \text{Balance c/d}& & 36,000& & & & \\ & & & \underset{–}{\underset{–}{\overline{3,06,150}}}& & & & \underset{–}{\underset{–}{\overline{3,06,150}}}\end{array}$