Question

Assertion (A) : Whenever goods are going out of the business without sales, purchase account is to be credited. Reason (R) :Goods will be recorded in the purchase book first and not in any other account.​

Answer 1

Answer:

assertion Is true but reason is false

Answer 2

Assertion (A) : Whenever goods are going out of the business without sales, purchase account is to be credited. Reason (R) :Goods will be recorded in the purchase book first and not in any other account.​

• In the following situations, the purchasing account gets credited.

-If a free sample of a product is provided,

-If items are stolen or misplaced

-If goods are contributed to a good cause,

-If the proprietor removes things for personal use,

• When goods leave a business, the transactions are usually referred to as sales. Purchases are lowered in all of those circumstances by crediting the purchases account, which is because no sales are taking place. Instead, things are being removed from the store without being sold.
• The Purchase Book maintains a record of all things acquired on credit. Only credit purchases, not cash purchases, are documented in the Purchase book. Any asset purchase is not noted in the Purchase book.

Therefore, the assertion is correct but the reason is incorrect.