Question

Bought goods for cash from s.narain & Co.

Answer 1

Purchases A/C.  Dr   Rs.xxx   To Cash A/C.  Rs.xxx (Being goods purchased for cash from S Narain &Co.)

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Purchases A/c - real A/c , goods comes into the business , therefore its debited

Cash A/c - real A/c , where money goes out of the company therefore its credited

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Journal entry

Purchases A/c     Dr    

          To Cash A/c                

(being purchased goods for cash  )