Calculation the credit purchase

You can easily calculate value of credit purchase . For calculating credit purchase you should open creditor account . I am giving guidelines for this .

1. Write creditor account on any excel sheet with making two sides one side is debit and other side is credit
2. Write your business's creditors opening balance in credit side with giving by balance b/d name
3. Write the amount that you have given to your creditors in the current year in the debit side of creditor account
4. 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
5. 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
6. 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 .