Question

cash purchase rs 10,000 credit purchase rs 20,000 & purchase ruturn 5000 what is the exact amount of purchase?​

Answer 1

Answer:

The Actual amount of purchase, to be recorded in the profit and loss A/c will be Rupees (10,000+20,000-5,000) = 25,000.

Explanation:

The Journal entries relating to these points are as follows:

a) cash purchase of rupees 10,000

Purchase A/c                Dr.     10,000

      To Cash A/c                                   10,000

b) Credit purchase of rupees 20,000

Purchase A/c                Dr.     20,000

      To Creditor A/c                              20,000

c) Purchase return of rupees 5,000

Purchase Return A/c    Dr.       5,000

      To Purchase A/c                              5,000

Hence Balance in Purchase a/c = (10,000+20,000-5,000)= Rs. 25,000 (Dr.)

Therefore, the balance of Purchase a/c shall e transferred to Trading a/c as follows:

Trading A/c                  Dr.     25,000

      To Purchase A/c                            25,000