Question

cash purchases rs 5000 (accounting equation)​

Answer 1

Explanation:

Assets = Equity + Liabilities

( 5000 - 5000 ) = 0 + 0

0 = 0

Plz note, purchases have two oppostie effects on the Assets. It increases the stock and also reduces the cash !

Hence, the total effect becomes '0'.

Answer 2

Purchase account A/C    dr

   To cash A/C

• Journal is the primary book of accounting where all the financial transactions are recorded. It is also known as a prime record of double entry bookkeeping.
• All the financial transactions are recorded in a detailed manner which is then posted into the respective accounts.
• Many big firms have various journals which are similar to the normal journal but are divided into various books called the subsidiary books.