Question

From the following information calculate total purchases.

	Rs
Creditors April. 01, 2016	30,000
Creditors March. 31, 2017	20,000
Opening balance of Bills payable	25,000
Closing balance of Bills payable	35,000
Cash paid to creditors	1,51,000
Bills discharged	44,500
Cash purchases	1,29,000
Return outwards	6,000

Answer 1

Creditors Account
Dr.				Cr.
Particulars	Amount Rs		Particulars	Amount Rs
Cash	1,51,000		Balance b/d	30,000
Return Outwards	6,000		Purchases – credit	2,01,500
Bills Payable (accepted)	54,500		(Balancing figure)
Balance c/d	20,000
	2,31,500			2,31,500

 

Bills Payable Account
Dr.				Cr.
Particulars	Amount Rs		Particulars	Amount Rs
Cash (Bills discharged)	44,500		Balance b/d	25,000
			Creditors – (Bills Payable accepted)	54,500
Balance c/d	35,000		(Balancing figure)
	79,500			79,500

 

Total Purchases	= Cash Purchases + Credit Purchases (as per Creditors Account)
	= 1,29,000 + 2,01,500
	= Rs 3,30,500