>> July 19, 2008
You can easily calculate value of credit purchase . For calculating credit purchase you should open creditor account . I am giving guidelines for this .
- Write creditor account on any excel sheet with making two sides one side is debit and other side is credit
- Write your business's creditors opening balance in credit side with giving by balance b/d name
- Write the amount that you have given to your creditors in the current year in the debit side of creditor account
- Write closing balance of your creditors in the end of this year ( this amount shows unpaid amount which is payable to your creditor at the end of this year ) in the debit side of this account
- You will see that debit side is more than credit side of this account , the difference will be credit purchase and it should be written in the credit side of this account
- Now you are seeing your credit purchase .
This credit purchase is very necessary when you will calculate the net consumption of your stock
because for calculating net consumption for stock , we always add purchase in the opening stock and deduct closing stock . This net consumption will show in profit and loss account or income and expenditure account .
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