# Net Purchases Example

Net purchase is the amount necessary to bring the goods to their location for resale to an end customer. Here, you can refer two net purchases example problems with solution using the formula given below.

## Net Purchases Example Problems with Solution

###### Example 1:

Let us consider the problem: A customer receives goods with an amount of Rs. 7000 and freight-in cost of Rs. 1200. Additionally, he has purchase discount and allowances of Rs. 200 and Rs. 500. Calculate his net purchase amount?

###### Solution:

We can calculate the Net Purchase Amount using the given formula.

#### Formula:

Net Purchase Price = p - (d + a) Where, p = Amount of Total Purchases and freight-in cost d = Purchase Discounts a = Purchase Returns & Allowance

Substituting the values in the formula,

Net Purchase Amount= (7000 + 1200) - (200 + 500) = 8200 - 700 = Rs. 7500

Therefore, Net purchase amount is Rs. 7500.

###### Example 2:

Refer the below net purchases example problem with solution.

Let us consider the problem: Calculate net purchase amount of an end customer who receives goods with an amount of \$ 25000 and freight-in cost of \$ 1500. Additionally, he has purchase discount and allowances of \$ 1000 and \$ 2500. Calculate his net purchase amount?

###### Solution:

Substituting the values in the above given formula,

Net Purchase Amount = (25000 + 1500) - (1000 + 2500) = 26500 - 3500 = \$ 23000

Therefore, the amount of Net purchase is \$ 23000.