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Purchases value has been derived after considering returns, then why we need to again deduct in trading a/c?
Answers (7)
Thread Starter
Sugam SMSir how come? I didn't understand, the balancing fig is purchases right. So we already accounted returns and bal fig is purchases , it means the value we get is after deducting returns.
in creditors a/c you have found the total sales made during the year
Thread Starter
Sugam SMSir how come? I didn't understand, the balancing fig is purchases right. So we already accounted returns and bal fig is purchases , it means the value we get is after deducting returns.
but in trading a/c you are using actual purchases which is adjusted to returns then it is actual purchases
Thread Starter
Sugam SMSir how come? I didn't understand, the balancing fig is purchases right. So we already accounted returns and bal fig is purchases , it means the value we get is after deducting returns.
Prepare a creditor account with following - Purchases - 10,000 Purchase returns - 500 Amount paid - 6000 And tell me what amount will you consider in Trading Account