Selena does not keep proper accounting records, and it is necessary to calculate her total purchases for the year ended 31 January 20X5 from the following information:
| $ | ||
| Trade payables: | 31 January 20X4 | 32,600 |
| 31 January 20X5 | 42,813 | |
| Payment to suppliers | 222,100 | |
| Cost of goods taken from inventory by Selena for her personal use | 250 | |
| Refunds received from suppliers | 600 | |
| Discounts received | 2,800 | |
What is the figure for purchases that should be included in Selena’s financial statements?
Answer
| PURCHASES CONTROL ACCOUNT | |||
| $ | $ | ||
| Payments to suppliers | 222,100 | Opening balance | 32,600 |
| Discounts received | 2,800 | Goods taken | 250 |
| Closing balance | 42,813 | Refunds received | 600 |
| – | Purchases (bal fig) | 234,263 | |
| 267,713 | 267,713 | ||