Question

cash purchase : 35000 , credit purchase : 55000 , net purchase : 88000 , purchase return : ?​

Answer 1

ANSWER :

• ❖ If Cash Purchase is Rs. 35,000; Cedit Purchase is Rs. 55,000; Net Purchase is Rs. 88,000; then Purchase Returns is Rs. 2,000.

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SOLUTION :

❒ Given :-

• Cash Purchase = Rs. 35,000

• Credit Purchase = Rs. 55,000

• Net Purchase = Rs. 88,000

❒ To Find :-

• Purchase Returns = ?

❒ Formula Used :-

• $\dag \: \: \underline{ \boxed{ \sf{ \: Net \: \: Purchase = Total \: \: Purchase - Purchase \: \: Return \: }}}$

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❒ Calculation :-

We have,

• Cash Purchase = Rs. 35,000

• Credit Purchase = Rs. 55,000

∴ Total Purchase = Cash Purchase + Credit Purchase

➜ Total Purchase = Rs. 35,000 + Rs. 55,000

➜ Total Purchase = Rs. 90,000

Now,

We have,

• Total Purchase = Rs. 90,000

• Net Purchase = 88,000

We know that,

• ★ Net Purchase = Total Purchase - Purchase Returns

Using this formula, we get,

• ✠ Net Purchase = Total Purchase - Purchase Returns

➨ Rs. 88,000 = Rs. 90,000 - Purchase Returns

➨ Purchase Returns = Rs. 90,000 - Rs. 88,000

∴ Purchase Returns = Rs. 2,000

• Hence, the amount of Purchase Returns is Rs. 2,000.

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MORE TO KNOW :

• ✎ Purchase :- In accounting, the term "purchase" refers to buy of goods in which a business deals in. Purchase of goods may be either in cash or on credit.

• ✎ Cash Purchase :- When goods are purchased by making payment in cash or by cheque, it is known as Cash Purchase.

• ✎ Credit Purchase :- When goods are purchased on a condition that the payment will be made at a future date, it is known as Credit Purchase.

• ✎ Purchase Returns :- When a part or whole goods purchased by a business earlier are returned to the supplier for some reasons, it is known as Purchase Returns. Purchase Returns is also called Returns Outward.

• ✎ Net Purchase :- The difference between total purchase (including both cash and credit purchase) made by a business and purchase returns is known as Net Purchase.