Question

Bought goods from bihar trading 360

Answer 1

Purchases A/C    Rs. 360

  To Cash A/C   Rs.360

(Being goods purchased from Bihar)

Answer 2

This transaction affects two accounts.. purchases account (Goods are Purchased) , BIhar trading co account (Purchased from them on credit)

The three golden rules of accounting are..

Personal account - debit the reciever, credit the giver

Real account - debit all the assets,credit all the liabilities..

nominal account - Debit All expenses and losses, credit All incomes and gains

Purchases account is a nominal account (expenses)

BIhar trading co (giver; Personal account as the name suggests)


the Journal Entry will be..


Purchases account Dr 360

To BIhar trading co 360

(being Goods Purchased)