goods purchased on credit
Answers
Explanation:
the journal entry will be....
purchases a/c dr
to creditors a/c
( being goods purchased on credit)
golden principles of accounting .
personal account rule
dr- the receiver.
cr- the giver.
real account rule
dr- what comes in.
cr- what goes out.
nominal account rule.
dr- all expenses and losses.
cr- all incomes and gains.
here creditors a/c is credited because they are giving goods.refer personal account rule.
here purchases/goods a/c is debited because goods are coming into the business. refer real a/c rule.
Answer
Golden Rules of Journal
Personal account rule
Debit- The receiver.
Credit- The giver.
Real account rule
Debit- What comes in.
Credit- What goes out.
Nominal account rule
Debit- All expenses and losses.
Credit- All incomes and gains.
Now
The journal entry will be
Purchases A/C DR
To Creditors A/C
(Being Goods purchased on Credit )