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When adjusted purchase is shown on the debit column of the trial balance then
- a)Both opening stock and closing inventory do not appear in the trial balance
- b)Closing inventory is shown in the trial balance and not the opening inventory
- c)Opening inventory is shown in the trial balance and not the closing inventory
- d)Both opening and closing inventory appear in the trial balance
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
When adjusted purchase is shown on the debit column of the trial balan...
Adjusting Purchases and Trial Balance
Adjusting purchases refer to the adjustments made to the purchases made during the accounting period. These adjustments are made to account for any changes in the inventory levels, such as the purchase of goods that are yet to be received or the return of goods that have already been received.
The trial balance, on the other hand, is a statement that lists all the balances of the accounts in the ledger. It is prepared to ensure that the total debits and credits of the accounts are equal and to identify any errors in the accounts.
When adjusted purchases are shown in the debit column of the trial balance, it means that the total amount of adjusted purchases made during the accounting period has been debited to the accounts. In this scenario, the closing inventory is shown in the trial balance and not the opening inventory. The reason for this is as follows:
• Opening inventory is the inventory that a business has at the beginning of the accounting period. It is not affected by the adjusted purchases made during the period.
• Closing inventory, on the other hand, is the inventory that a business has at the end of the accounting period. It is affected by the adjusted purchases made during the period.
Therefore, when adjusted purchases are shown in the debit column of the trial balance, it means that the closing inventory has been adjusted for the purchases made during the period. The opening inventory, which is not affected by the adjusted purchases, is not shown in the trial balance.
Adjusting purchases refer to the adjustments made to the purchases made during the accounting period. These adjustments are made to account for any changes in the inventory levels, such as the purchase of goods that are yet to be received or the return of goods that have already been received.
The trial balance, on the other hand, is a statement that lists all the balances of the accounts in the ledger. It is prepared to ensure that the total debits and credits of the accounts are equal and to identify any errors in the accounts.
When adjusted purchases are shown in the debit column of the trial balance, it means that the total amount of adjusted purchases made during the accounting period has been debited to the accounts. In this scenario, the closing inventory is shown in the trial balance and not the opening inventory. The reason for this is as follows:
• Opening inventory is the inventory that a business has at the beginning of the accounting period. It is not affected by the adjusted purchases made during the period.
• Closing inventory, on the other hand, is the inventory that a business has at the end of the accounting period. It is affected by the adjusted purchases made during the period.
Therefore, when adjusted purchases are shown in the debit column of the trial balance, it means that the closing inventory has been adjusted for the purchases made during the period. The opening inventory, which is not affected by the adjusted purchases, is not shown in the trial balance.
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When adjusted purchase is shown on the debit column of the trial balan...
Correct answer is B.
Adjusted purchase= opening stock+ purchase - closing stock
.
here,
opening stock is already added in purchase so it will not appear/ in trial balance and,
closing stock is subtracted so we will add closing stock balance in trial balance.
Adjusted purchase= opening stock+ purchase - closing stock
.
here,
opening stock is already added in purchase so it will not appear/ in trial balance and,
closing stock is subtracted so we will add closing stock balance in trial balance.
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When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer?
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When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer?.
When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer?.
Solutions for When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of When adjusted purchase is shown on the debit column of the trial balance thena)Both opening stock and closing inventory do not appear in the trial balanceb)Closing inventory is shown in the trial balance and not the opening inventoryc)Opening inventory is shown in the trial balance and not the closing inventoryd)Both opening and closing inventory appear in the trial balanceCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
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