Question

HEY FRIENDS......

MAY I HAVE YOUR ATTENTION PLEASE..

IN THE ABOVE ATTACHMENT WHY THE PURCHASE HAS BEEN CREDIT. ​

Answer 1

$\color{pink}{why \: purchase \: has \: been \: credited \: }$

ANSWER ÷ In Accounting with double concept , Every transaction has two aspect .

1. Debit
2. Credit

Debit means whatever comes in the business.

Credit means whatsever goes out of the business.

$\color{red} \boxed{for \: example}$

Cash Account dr.1200

• To sales account 1200

( being sold goods on cash )

In above case , cash comes in the business ,so it would be debited while cash come in against sales , Hence sales account will be credited for cash account.

$\color{blue}{your \: query}$

Why purchase credited when charity account is debited.

$\boxed{reason}$

If the goods come in the business it means purchase account debited.

FOR EXAMPLE

CASH PURCHASE₹3000

Purchase account dr 3000

• To cash account.....3,000

( being purchase goods on cash )

PURCHASE ACCOUNT IS DEBITED AGAINST CASH ACCOUNT BECAUSE CASH GOES OUT TO PURCHASE GOODS

HENCE PURCHASE ACCOUNT DEBITED ,MEANS GOODS COME IN THE BUSINESS.....

But sometimes purchase would be credited i.e goods goes out of the business.

In your question, Charity is debited against credit of purchase account .

we all know , In case charity goods goes out of the business .

So entry would be

Charity account dr

• to purchase account.

( being goods goes out of the business for charity )

$\color{pink}{hope \: it \: is \: hepful \: to \: you \: }$

Answer 2

⚡Heya mate⚡

Charity A/C Dr

To purchase A/C

In the above transaction, purchase A/C has been credited because the goods which we bought are been given as charity.