What Is Net Purchases In Accounting
Net Purchases i n Accounting is calculated by deducting ( Contra Expense Accounts ) Purchases Returns , Purchases Allowances and Purchases Discounts from Gross or Total Purchases that is a N et Purchases Formula. Mathematically, we can write as shown below: N et Purchases = Gross Purchases - (Purchases Returns + Purchases Allowances + Purchases Discounts) Net Purchases is recorded o n the Income Statement or Profit & Loss Account for the accounting period.