Calculation of Purchases

Opening Stock = Rs. 6,000
Closing Stock = Rs. 8,000
Cost of Goods Sold = Rs. 87,000

To calculate the value of purchases, we can use the following formula:

Purchases = Cost of Goods Sold + Closing Stock - Opening Stock

Substituting the given values, we get:

Purchases = Rs. 87,000 + Rs. 8,000 - Rs. 6,000
Purchases = Rs. 89,000

Therefore, the value of purchases is Rs. 89,000.

Explanation

The concept of purchases is important in accounting, as it helps to determine the cost of goods sold during a particular period. In this question, we are given the opening stock, closing stock, and cost of goods sold, and we are required to calculate the value of purchases.

The formula for calculating purchases is based on the principle of accounting known as the cost of goods sold. This principle states that the cost of goods sold during a particular period should include the cost of the goods that were sold, as well as the cost of goods that were not sold but were used in the production process.

To apply this formula, we first need to understand the meaning of opening stock, closing stock, and cost of goods sold. Opening stock refers to the value of inventory that a company has at the beginning of a particular period. Closing stock refers to the value of inventory that a company has at the end of a particular period. Cost of goods sold refers to the cost of the goods that were sold during a particular period.

Using the formula for purchases, we can calculate the value of purchases by adding the cost of goods sold and the value of closing stock, and subtracting the value of opening stock. This gives us the total cost of goods that a company has purchased during a particular period.

In this question, we are given the values of opening stock, closing stock, and cost of goods sold, and we can simply substitute these values into the formula to calculate the value of purchases. The answer is Rs. 89,000.