PURCHASES ACCOUNT (video below)
Selena does not keep proper accounting records, and it is necessary to calculate her total purchases for the year ended 31 January 20X5 from the following information:
| $ | ||
| Trade payables: | 31 January 20X4 | 32,600 |
| 31 January 20X5 | 42,813 | |
| Payment to suppliers | 222,100 | |
| Cost of goods taken from inventory by Selena for her personal use | 250 | |
| Refunds received from suppliers | 600 | |
| Discounts received | 2,800 | |
What is the figure for purchases that should be included in Selena’s financial statements?
Answer
| PURCHASES CONTROL ACCOUNT | |||
| $ | $ | ||
| Payments to suppliers | 222,100 | Opening balance | 32,600 |
| Discounts received | 2,800 | Goods taken | 250 |
| Closing balance | 42,813 | Refunds received | 600 |
| – | Purchases (bal fig) | 234,263 | |
| 267,713 | 267,713 | ||
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