Illustrations · Illustration 3
Q.
Compute the amount of total purchases and total sales of Mr. Amit from the following information for the year ending on March 31, 2017.
| Particulars | Amount (₹) |
|---|---|
| Total debtors as on April 01, 2016 | 40,000 |
| Total creditors as on April 01, 2016 | 50,000 |
| Bills receivable as on April 01, 2016 | 30,000 |
| Bills payable as on April 01, 2016 | 45,000 |
| Discount received | 5,000 |
| Bad debts | 2,000 |
| Return inwards | 4,000 |
| Discount allowed | 3,000 |
| Cash sales | 10,000 |
| Cash purchases | 8,000 |
| Total debtors as on March 31, 2017 | 80,000 |
| Cash received from debtors | 1,00,000 |
| Cash paid to creditors | 80,000 |
| Cash received against bills receivable | 25,000 |
| Payment made against bills receivable | 40,000 |
| Total creditors as on March 31, 2017 | 40,000 |
| Bills payable as on March 31, 2017 | 50,000 |
| Bills receivable as on March 31, 2017 | 35,000 |
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✓ Free question
Credit purchases ₹1,20,000 (from total creditors account) + cash ₹8,000 = total purchases ₹1,28,000; credit sales ₹1,79,000 (from total debtors account) + cash ₹10,000 = total sales ₹1,89,000.
Total Bills Receivable Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Balance b/d | 30,000 | Cash | 25,000 | ||||
| Total debtors (balancing figure) | 30,000 | Balance c/d | 35,000 | ||||
| Total | 60,000 | Total | 60,000 |
Total Bills Payable Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Cash | 40,000 | Balance b/d | 45,000 | ||||
| Balance c/d | 50,000 | Total creditors (balancing figure) | 45,000 | ||||
| Total | 90,000 | Total | 90,000 |
Total Debtors Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Balance b/d | 40,000 | Bad debts | 2,000 | ||||
| Sales (balancing figure) | 1,79,000 | Return inwards | 4,000 | ||||
| Discount allowed | 3,000 | ||||||
| Cash | 1,00,000 | ||||||
| Bills receivable (transfer from bills receivable account) | 30,000 | ||||||
| Balance c/d | 80,000 | ||||||
| Total | 2,19,000 | Total | 2,19,000 |
Total Creditors Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Discount received | 5,000 | Balance b/d | 50,000 | ||||
| Cash | 80,000 | Purchases (credit) (balancing figure) | 1,20,000 | ||||
| Bills payable (transfer from bills payable account) | 45,000 | ||||||
| Balance c/d | 40,000 | ||||||
| Total | 1,70,000 | Total | 1,70,000 |
Working Notes
- Credit purchases from the total creditors account are ₹1,20,000. Cash purchases given are ₹8,000. Total purchases = ₹1,20,000 + ₹8,000 = ₹1,28,000.
- Credit sales from the total debtors account are ₹1,79,000 and cash sales are given as ₹10,000. Total sales = ₹1,79,000 + ₹10,000 = ₹1,89,000.
✓Final answer
Total purchases ₹1,28,000; Total sales ₹1,89,000.
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