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- In a trading concern, purchases are the expenses of buying finished goods to sell them further. Suppose any of these purchased goods are returned to the supplier. In that case, the corresponding amount is titled as ‘purchase returns’ or ‘returns outward,’ and is subtracted from purchases to obtain net purchases.Closing stock: 20,000Profit and loss account Account: 90,000Sales: 70,000tothefinance.com/trading-account-in-accounting/
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