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प्रश्न
What is meant by purchase returns?
उत्तर
- Purchases returns or returns outwards are a normal part of the business.
- Goods may be returned to the supplier if they carry defects or if they are not according to the specifications of the buyer.
APPEARS IN
संबंधित प्रश्न
What are the objectives of preparing trading account?
Compute the cost of goods sold from the following information:
| Particulars | ₹ | Particulars | ₹ |
| Opening stock | 10,000 | Indirect expenses | 5,000 |
| Purchases | 80,000 | Closing stock | 15,000 |
| Direct expenses | 7,000 |
Closing stock is on the credit side of the ______ and also in ______.
Distinguish between book keeping and accounting.
Explain the needs of a Trading Account.
The following is the trial balance obtained from the books of Mr. G. Vishwanath as on 30th June, 2019:
| Debit (₹) | Credit (₹) | |
| Capital | 50,000 | |
| Drawings | 1,000 | |
| Stock as on 1.7.2018 | 28,000 | |
| Loose Tools as on 1.7.2018 | 1,000 | |
| Sundry Debtors and Sundry Creditors | 25,000 | 15,000 |
| Purchases and Sales | 90,000 | 1,72,000 |
| Returns | 750 | 550 |
| Discounts | 250 | 300 |
| Land and Building | 88,000 | |
| Salaries and Wages | 33,000 | |
| Carriage Inward | 1,200 | |
| Carriage Outward | 1,500 | |
| Insurance | 1,000 | |
| Commission | 18,550 | |
| Cash in Hand | 1,700 | |
| Bank Overdraft | 20,000 | |
| Advertisement | 2,000 | |
| Bills Receivable and Bills Payable | 7,500 | 5,500 |
| 2,81,900 | 2,81,900 |
You are required to prepare Mr. Vishwanath's trading account and profit and loss account for the period ended 30 June, 2019 and a balance sheet as on that date after taking into account the following adjustments.
- Stock valued on 30.6.2019 at ₹ 25,000.
The following is the trial balance of Mr. A. Chatterjee for the year ended 31st December, 2018. Compile the final accounts for him, after incorporating the adjustments and thereafter supply him with the required information, listed by him.
| Debit (₹) | Credit (₹) | |
| Opening Stock | 5,000 | |
| Capital | 30,000 | |
| Drawings | 2,000 | |
| Loan from Mr. Patel | 8,000 | |
| Purchases and Sales | 13,000 | 50,000 |
| Rejections Returned | 2,000 | 500 |
| Wages | 5,000 | |
| Salaries | 8,000 | |
| Carriage Outward | 2,000 | |
| Rent and Rates | 3,000 | |
| Telephone and Trunk Calls | 800 | |
| Petty Expenses | 400 | |
| Plant and Machinery | 35,000 | |
| Office Fixtures and Equipment | 10,000 | |
| Cash in Hand | 2,000 | |
| Bank Overdraft | 1,000 | |
| Customers and Suppliers | 8,000 | 6,700 |
| 96,200 | 96,200 |
Closing stock value is ₹ 15,000.
Trial Balance of Mr. J. Junior as on 31.3.2019:
| Debit (₹) | Credit (₹) | |
| Factory Power | 16,000 | |
| Carriage Charges | 2,500 | |
| Salaries | 20,400 | |
| Sales & Purchases of Goods | 1,40,000 | 2,67,000 |
| Machinery | 1,20,000 | |
| Discounts Received and Allowed | 5,000 | 6,000 |
| Wages (manufacturing activity) | 18,000 | |
| Stock | 25,000 | |
| Commission | 3,800 | |
| Insurance | 8,000 | |
| Loose Tools (Fixed Asset) | 11,000 | |
| Returns of Goods | 5,000 | 6,000 |
| Debtors & Creditors | 45,000 | 18,000 |
| Carriage on Sales | 6,000 | |
| Rent & Rates | 10,800 | |
| Bad Debts Written off & Recovered | 2,000 | 1,600 |
| Investments | 80,000 | |
| Bank Accounts | 22,000 | 10,000 |
| Drawings & Capital | 15,000 | 2,37,000 |
| Bills Payable & Receivable | 6,000 | 4,000 |
| Income from Investments | 6,800 | |
| Cash | 2,500 | |
| 5,60,200 | 5,60,200 |
Compile Final Accounts:
- An inventory of the godown on 31.3.2019 reflected stock value stated as ₹ 50,000.
The following balances were extracted from the books of Sri S. Kumar on 31st December 2018.
| Dr. (₹) | Cr. (₹) | |
| Capital | 24,500 | |
| Drawings | 2,000 | |
| General Expenses | 2,500 | |
| Building | 11,000 | |
| Machinery | 9,340 | |
| Opening Stock | 16,200 | |
| Power | 2,240 | |
| Taxes & Insurance | 1,315 | |
| Wages | 7,200 | |
| Sundry Debtors | 6,280 | |
| Sundry Creditors | 2,500 | |
| Charity | 105 | |
| Bad Debts | 550 | |
| Bank Overdraft | 11,180 | |
| Sales | 65,360 | |
| Purchases | 47,000 | |
| Scooter | 2,000 | |
| Bad Debt Provision | 900 | |
| Commission | 1,320 | |
| Trade Expenses | 1,780 | |
| Bills Payable | 3,850 | |
| Cash | 100 | |
| 1,09,610 | 1,09,610 |
Stock on 31st December 2018 was valued at ₹ 23,500.
Prepare Final Accounts for the year ended 31st December 2018.
From the following trial balance of Shri Rai Bahadur, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date:
| TRIAL BALANCE | |||
| Debit Balance | (₹) | Credit Balance | (₹) |
| Drawings | 4,240 | Capital | 32,000 |
| Purchase less returns | 15,610 | Sales less Returns | 34,176 |
| Rates and Taxes | 388 | Sundry Creditors | 4,422 |
| Salaries | 1,612 | ||
| Lighting and Heating | 164 | ||
| Electric Power | 384 | ||
| Commission | 414 | ||
| Insurance | 206 | ||
| Advertising | 214 | ||
| Bad Debts | 62 | ||
| Postage, Telegrams, etc. | 826 | ||
| Carriage | 754 | ||
| Opening Stock | 6,160 | ||
| Wages | 7,962 | ||
| Land and Building | 15,840 | ||
| Plant and Machinery | 4,034 | ||
| Furniture and Fittings | 378 | ||
| Sundry Debtors | 6,082 | ||
| Cash at Bank | 5,268 | ||
| 70,598 | 70,598 | ||
The closing stock on 31st March was valued at ₹ 8,760.
