Question

how would adjusted purchases appear in the sums if its given in trial balance.if also opening stock is given in the same trial balance should we account for it ,y?

Answer 1

Dear Student,

First of all let us understand the formula for adjusted purchases.

$\mathrm{Adjusted}\mathrm{Purchases}=\mathrm{Purchases}-\mathrm{Purchases}\mathrm{Return}+\mathrm{Opening}\hspace{0.17em}\mathrm{Stock}-\mathrm{Closing}\mathrm{Stock}$

Thus, when adjusted purchases is given in the question, then neither opening stock nor closing stock will appear in the Trading Account as these are already adjusted while calculating adjusted purchases.

Closing Stock will only be shown on the Assets side of the Balance Sheet.

Hope this clarifies your doubt.
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