How do you ascertain credit purchase and credit- sales
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in the case of credit purchase,
total purchase = cash purchase + credit purchase , will be entered in the debit side of Trading account
only, credit purchase will be adjusted with creditors in liability Side of balance sheet.
in the case of credit sales:
total sales = cash sales+ credit sales, will be entered in the credit side trading account.
only credit sales will be adjusted with debtor in the assets side of balance sheet.
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