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How in this sum cost of purchase is 580000 (Given: adjusted purchases - 420000)see below image
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You have to take Cost of purchases i.e. without adjusting closing and opening stock And in the Q we have been given Adjusted purchases it means adjustment of closing and opening stock is already done so we need to reverse it back Adj purchase = Opening stock + purchase - closing stock 420,000 = Purchase - 160,000 ( being closing stock is greater than opening) So The cost of purchase = 580,000