How To Calculate Purchases Without Ending Inventory / Stock

In that case we are given the Cost of Goods Available for Sale, then we can find out the value of inventory purchases without ending inventory.

We know that:

Opening Inventory + Purchases = Cost of Goods Available for Sale

 

For Example, if we have opening inventory Rs. 5000, Cost of Goods Available for Sale = Rs. 2000, then what is Purchases?

Putting the value in the above formula, we get:

5000 + Purchases = 20000

Purchases = 20000 - 5000 = Rs. 15000

 

So , we can easily calculate purchases inventory without ending inventory from the above formula.