Question

230000 Goods purchase by paying 30000 cash immediately

Answer 1

Journal Entry :

Purchases A/C. Dr. Rs.2,30,000

To Cash A/C. Rs 30,000

To Creditor A/C. Rs.2,00,000

(Being goods purchased )

Explanation:

According to the Real Account Principle,

Debit what comes into the business.

Credit what goes out of the business.

So, Purchases is debited and Cash is credited.

For the remaining Rs 2,00,000 ,the supplier of the goods is our creditor . Hence credited.

Answer 2

Journal entry

Purchases A/c    Dr  2,30,000

         To cash A/c                             30000

        To creditors A/c                     2,00,000

(being goods purchased )

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Reason

Purchases is the expenses to the company soits debited

cash goes out of the company therefore its credited

Creditor is the supplier of the company , hes the giver of the goods  therefore its credited