Compute the amount of total purchases and total sales of Mr. Amit from the following information for the year ending on March 31, 2017.
Total debtors as on April 01, 2016 = Rs40,000
Total creditors as on April 01, 2016 = Rs 50,000
Bills receivable as on April 01, 2016 = Rs 30,000
Bills payable as on April 01, 2016 = Rs 45,000
Discount received = Rs 5,000
Bad debts = Rs 2,000
Return inwards =Rs 4,000
Discount allowed =Rs 3,000
Cash sales = Rs 10,000
Cash purchases = Rs 8,000
Total debtors as on March 31, 2017 = Rs 80,000 Cash received from debtors = Rs 1,00,000
Cash paid to creditors = Rs 80,000
Cash received against bills receivable = Rs 25,000
Payment made against bills receivable = Rs 40,000
Total creditors as on March 31, 2017 = Rs 40,000
Bills payable as on March 31, 2017 = Rs 50,000
Bills receivable as on March 31, 2017 = Rs 35,000

Explanation

Accounts from incomplete records

Working Notes
i) Credit purchase have been computed from total creditors account as Rs `(1,20,00)^(2)`. Cash purchase given are Rs 8,000. Total purchases will be Rs 1,20,00 + Rs 8,000 = Rs 1,28,000.
ii) Credit sales have been computed from total debtors account as Rs 1,79,000 + Rs 10,000= Rs 1,89,000