How To Calculate Credit Purchases
When The Business bought goods, then we can say that the business made purchases for the Current Accounting Cycle. Purchases Can be Cash Purchases or Credit Purchases . When Goods Purchased From Suppliers ( Accounts Payable ) of the business, then Credit Purchases are made and when goods purchased by the business for Cash, then Cash Purchases are created. Here we are concerned with How To Find the value of Net Credit Purchases? Read Out Also, “ How To Calculate Credit Sales ” Credit Purchases Calculation A nd Formula By Using A Balance Sheet Account (Accounts Payable Account) Credit Purchases are calculated by Preparing Total Accounts Payable / Creditors T Account . It is to be noted that Net Credit Purchases Formula may also be used to calculate Net Credit Purchases. Opening Accounts Payable / Creditors is the Ending Balance of Previous Accounting Period. However, there is no Opening Accounts Payable for the business, if...