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 Purchases = Rs. 1,10,000, Return outward Rs. 10,000. Goods given away as charity = Rs. 1,500. Goods distributed as sample = Rs. 1,000. What is the amount of net purchases ?
  • a)
    Rs. 97,500
  • b)
    Rs. 1,00,000
  • c)
    Rs. 11,7500
  • d)
    Rs. 1,10,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Purchases = Rs. 1,10,000, Return outward Rs. 10,000. Goods given away ...
Given:
Purchases = Rs. 1,10,000
Return outward = Rs. 10,000
Goods given away as charity = Rs. 1,500
Goods distributed as sample = Rs. 1,000

To find: Net purchases

Explanation:
Net purchases is the value of goods purchased by a business after deducting purchase returns, goods given away as charity and goods distributed as samples.

Net purchases = Purchases - Return outward - Goods given away as charity - Goods distributed as sample

Substituting the given values, we get:

Net purchases = 1,10,000 - 10,000 - 1,500 - 1,000
Net purchases = Rs. 97,500

Therefore, the amount of net purchases is Rs. 97,500 (Option A).
Free Test
Community Answer
Purchases = Rs. 1,10,000, Return outward Rs. 10,000. Goods given away ...
N. P. = purchase - purchase return - charity - adv. expense
=110000 - 10000 - 1500 -1000
= 97500 rs.
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Purchases = Rs. 1,10,000, Return outward Rs. 10,000. Goods given away as charity = Rs. 1,500. Goods distributed as sample = Rs. 1,000. What is the amount of net purchases ?a)Rs. 97,500b)Rs. 1,00,000c)Rs. 11,7500d)Rs. 1,10,000Correct answer is option 'A'. Can you explain this answer?
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