Question

(a) Purchased goods from Rohit worth 10000
(b) goods given away as Charity of worth 2000​

Answer 1

• Purchased goods from Govind for ₹10000 at 20% trade discount The journal entry would be as follows: > Purchase a/c dr ₹8000
• In such case, charity and advertisement are treated as expenses and therefore, their accounts are debited according to the rule of nominal account and purchase or goods account is credited by the amount of goods given according to the rule of real account. Goods worth Rs. 2,000 given as charity.