Where purchases comes in chart of account of a public ltd.com?

Question

Where purchases comes in chart of account of a public ltd.com?

Answer 1

it depends on the account title that you are using. if you are using the account title "purchases" then, place it under purchases. also, that is if you are using the periodic inventory system. but if you are using the perpetual inventory system, then place it under merchandise inventory or inventory.

Answer 2

in their chart of accounts it would be under direct costs.  On the f/s it would be in the cost of goods manufactured/sold section of the income statement.