Question

Gopal sold goods to us Rs-10000

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Purchases A/c - nominal A/c - where its the expense to the company therefore its debited

# as goods sold to us means we have purchased from gopal

Cash A/c - Real A/c - Where money goes out the company therefore its credited

# i assume its cash purchases and no gst applied

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Journal entry

Purchases A/c  Dr  10000

         To cash A/c                 10000

(being goods purchased from gopal )

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Answer for accounting equation ( if necessary )

Stock ( asset ) increase and Cash ( asset ) will decrease

• as goods comes into the company stock will increase

• cash decrease as we pay by cash  

Answer 2

Purchases A/C. Dr. Rs 10,000

To Gopal A/C. Rs.10,000

(Being goods bought from Gopal)