Question

From the following information calculate total purchases:

$\begin{array}{cc}& \text{(Rs.)}\\ \text{Creditors Jan 1, 2005}& 30,000\\ \text{Creditors Dec 31, 2005}& 20,000\\ \text{Openining balance of Bills Payable}& 25,000\\ \text{Closing balance of Bills Payable}& 35,000\\ \text{Cash paid to Creditors}& 1,51,000\\ \text{Bills discharged}& 44,000\\ \text{Cash purchase}& 1,29,000\\ \text{Return outwards}& 6,000\end{array}$

Answer 1

$\text{Dr.}\text{Creditors Account}Cr.\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}\\ & & & & 2005& & & \\ & \text{Cash A/c}& & 1,51,000& Jan1& \text{Balance b/d}& & 30,000\\ & \text{Bills Payable A/c}& & 54,500& & \text{Purchases A/c}& & \\ & \text{Return Outwards A/c}& & 6,000& & \text{(net) (b/f)}& & 2,01,500\\ Dec31& \text{Balance c/d}& & 20,000& & & & \\ & & & \underset{–}{\underset{–}{\overline{2,31,500}}}& & & & \underset{–}{\underset{–}{\overline{2,31,500}}}\end{array}$

$\text{Dr.}\text{Bill Payable Account}Cr.\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}\\ 2005& & & & & & & \\ & \text{Cash}& & 44,500& Jan1& \text{Balance b/d}& & 25,000\\ Dec31& \text{Balance c/d}& & 35,000& & \text{Creditors}& & 54,500\\ & & & & & \text{(Bills Payable)}& & \\ & & & & & \text{(Balancing}& & \\ & & & & & \text{Figure)}& & \\ & & & \underset{–}{\underset{–}{\overline{79,500}}}& & & & \underset{–}{\underset{–}{\overline{79,500}}}\end{array}$

Total Purchases
= Cash Purchases + Credit Purchases
= Rs. 1,29,000 + Rs. 2,01,500
= Rs. 3,30,500