Question
A firm purchased goods for ₹50,000 and spent ₹2,000
on its freight. If the firm returned goods worth ₹5,000, what is the net purchase cost to be debited to the Purchases Account?Solution
Net Purchases = Total Purchases + Direct Expenses - Purchase Returns. Therefore, ₹50,000 + ₹2,000 - ₹5,000 = ₹47,000.
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