Calculation of Purchase Amount

To determine the amount of purchase, we need to consider the opening stock, closing stock, and the cost of goods sold. The formula to calculate the purchase amount is as follows:

Purchase Amount = Cost of Goods Sold + Closing Stock - Opening Stock

Now, let's calculate the purchase amount using the given information:

Step 1: Calculate the Cost of Goods Sold (COGS)

The cost of goods sold represents the total cost incurred in producing the goods that were sold during a specific period. It can be calculated using the following formula:

COGS = Opening Stock + Purchases - Closing Stock

Since we are given the opening stock, closing stock, and COGS, we can rearrange the formula to calculate purchases:

Purchases = COGS - Opening Stock + Closing Stock

Step 2: Substitute the Given Values

Given:
Opening Stock = ₹11,600
Closing Stock = ₹12,000
COGS = ₹161,400

Substituting the given values:

Purchases = ₹161,400 - ₹11,600 + ₹12,000
Purchases = ₹161,400 + ₹12,000 - ₹11,600
Purchases = ₹161,800

Step 3: Final Calculation

Therefore, the amount of purchases is ₹161,800.

To summarize:

- Opening Stock: ₹11,600
- Closing Stock: ₹12,000
- COGS: ₹161,400
- Purchases: ₹161,800

Conclusion

The amount of purchase is ₹161,800. This is calculated by subtracting the opening stock from the cost of goods sold and adding the closing stock. It is important to calculate the purchase amount accurately as it is a crucial component in determining the overall profitability and financial performance of a business.

161800 is purchase price