Total Purchases And Total Net Purchases - Definition And Meaning In Accounting
Total Purchases is the sum of Cash Purchases and Credit Purchases whereas Total Net Purchases is the sum of Net Cash Purchases and Net Credit Purchases.
Total Purchases Formula
Total Purchases = Cash Purchases + Credit Purchases
Total Net Purchases
It is the sum of Net Cash Purchases and Net Credit Purchases.
Total Net Purchases Formula
Total Net Purchases = Net Cash Purchases + Net Credit Purchases
Here Net Cash / Credit Purchases = Cash / Credit Purchases - Purchases Returns - Purchases Discounts & Allowances.
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