Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 3 - No. 37)
What is the formula for calculating purchases?
Purchases = Cost of sales + Opening inventory + Closing inventory
Purchases = Cost of sales + Opening inventory - Closing inventory
Purchases = Cost of sales - Opening inventory + Closing inventory
Purchases = Cost of sales - Opening inventory - Closing inventory
Explanation
The formula is Purchases = Cost of sales + Opening inventory - Closing inventory.
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