Waec Model Questions Vol1 2018 Financial Accounting Question 50

A sole trader's trading account for the year ended 31 December 2020 contains the following information (all figures in ₦): - Opening stock: 120,000 - Net sales: 720,000 - Gross profit margin: 25 % of net sales - Closing stock: 150,000 - Returns outwards (purchase returns): 8,000 - Freight‑in: 12,000 - Discount received on purchases: 5 % of net purchases - Cash expenses paid during the year: 45,000 - Total cash payments recorded in the cash book: 587,100 (this amount includes payments for purchases, freight‑in, purchase returns, discount received and cash expenses) - Total cash receipts recorded in the cash book: 500,000 (this amount includes net sales and cash received from customers) Determine the amount of purchases (net of returns) made during the year.