A Accounting

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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