Question

From the information given below, you are required to prepare the cash paid for the inventory
$\begin{array}{cc}\text{Particulars}& \text{(Rs.)}\\ \text{Inventory in the Beginning}& 40,000\\ \text{Purchase}& 1,60,000\\ \text{Inventory in the End}& 38,000\\ \text{Inventory Creditors in the Beginning}& 14,000\\ \text{Inventory Creditors in the End}& 14,500\end{array}$

Answer 1

Creditor’s Account
Dr. Cr.
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}& \text{Date}& \text{Particulars}& \text{J.F.}& \text{Amt. (Rs.)}\\ & \text{Cash}& & 1,59,500& & \text{Balance b/d}& & 14,000\\ & \text{(Balancing Figure)}& & & & & & \\ & \text{Balance c/d}& & \underset{–}{14,500}& & \text{Purchase}& & \underset{–}{1,60,000}\\ & & & \underset{–}{1,74,000}& & & & \underset{–}{1,74,000}\end{array}$

Cash paid for inventory amounts to Rs 1,59,500.

Note :
Purchase is considered to be credit purchase. Inventory in beginning and end has no effect.