Manzil Arora
(Others)
(1012 Points)
Replied 20 August 2020
Hi Bsai
Adjusted purchase is net of opening stock, purchase during the year, return during the year and closing stock; that is Opening stock + Purchases - returns - closing stock. If you analyse this formula you can see that the amount you get will be the material used during the year i.e. a direct expense. Thus, Adjusted purchase is an expense.
Further, Real accounts are those reported in balance sheet and Nominal accounts are those reported in Statement of P&L. Since Purchases belongs to P&L, it will be nominal account (debit what comes in = material).
Live Course on Invoice Management System (IMS) - 2nd Batch(With Recording)
CAclubindia
