Question

Bought goods for cash
Journal entry(double entry system)
=

Answer 1

Answer:PURCHASE A/C DR

TO CASH A/C

Explanation:AS IN DOUBLE ENTRY SYSTEM , EACH TRANSACTION EFFECTS TWO ACCOUNTS. BEING GOODS ARE BOUGHT FOR SELLING PURPOSE ARE TREATED AS PURCHASE AND CASH IS PAID , SO CASH IS GIVEN, BEING CASH PAID ARE ALWAYS CREDITED ACCORDING TO GOLDEN RULES OF ACCOUNTING.

Answer 2

Journal entry for - bought goods for cash

1. A journal is the first book of accounts.

2. All transactions are journalized and posted in the ledger.

3. Accounts are required to estimate the remaining cash in hand at the end of an accounting year. When business transactions are recorded, the accounts can be used for future references to track down the source of money or where was the money spent.

4. The dual concept of accounts upholds that every accounting transaction has a dual aspect, an income, and an expense.

5. The golden rule of accounting is - debit what comes in, credit what goes out. In the same way, incomes and profits are debited, losses and expenses are credited.

6. The journal for the transaction is -

Purchase account   debit

To cash account

( being goods purchased for cash)

7. Goods are debited because goods are purchased and cash is used for the exchange so the cash account is credited.