Question

Goods given as chrity rs 500

Answer 1

$\huge\mathtt\red{Answer}$

To Purchases A/c 500

• Purchases account is credited as goods given as charity from own stock reduces the amount of purchases so we credit the purchase account to reduce the amount of purchases

Answer 2

$\huge{ANSWER}$

Goods costing ₹500 given as charity (Sales price ₹600 ... To Purchases A/c 500

Charity account is debited as it is treated as an expense for the company. Purchases account is credited as goods given as charity from own stock reduces the amount of purchases so we credit the purchase account to reduce the amount of purchases.