Question : Calculate the net purchase from the following information:
Revenue from Operations:
Cash: Rs.25,000
Credit: Rs.75,000
Purchases:
Cash: Rs.15,000
Credit: Rs.60,000
Carriage Inwards: Rs.2,000
Salaries: Rs.25,000
Decrease in Inventory: Rs.10,000
Return Outwards: Rs.2,000.
Option 1: Rs.1,00,000
Option 2: Rs.83,000
Option 3: Rs.73,000
Option 4: Rs.63,000
Correct Answer: Rs.73,000
Solution :
Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operation
= Rs.25, 000 + Rs.75, 000 = Rs. 1,00,000
Net Purchases = Cash Purchases + Credit Purchases − Return Outwards
= Rs. 15,000 + Rs. 60,000 − Rs. 2,000 = Rs. 73,000
Hence option 3 is the correct answer.