Question

From the following information supplied by X, who keeps his books on Single Entry System, you are required to calculate Total Purchases:

	₹
Opening balance of Bills Payable	5,000
Opening balance of Creditors	6,000
Closing balance of Bills Payable	7,000
Closing balance of Creditors	4,000
Cash paid to Creditors during the year	30,200
Bills Payable discharged during the year	8,900
Returns Outward	1,200
Cash Purchases	25,800

Answer 1

Creditors Account
Dr.			Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
Cash A/c	30,200	Balance b/d	6,000
Purchases Return A/c	1,200	Purchases A/c	40,300
Bills Payable A/c	10,900
Balance c/d	4,000
	46,300		46,300

Total Purchases = Cash Purchases + Credit Purchases

Total Purchases = 25,800 + 40,300 = ₹ 66,100