Question

If goods of Rs 75 000 are purchased on credit from Insha the (a) Purchases account will be debited with Rs 75 000 and Insha's account will be credited with Rs 75 000 (b) Purchases account will be debited with Rs 75 000 and cash account will be credited with Rs 75 000 (c) Insha's account will be debited with Rs 75 000 and purchases account will be credited with Rs 75 000 (d) None of the above​

Answer 1

Answer:

a) purchases account will be debited by 75000 rs and insha account credited with 75000

Answer 2

What are the journal entries for purchase in cash Rs 75,000?

Answer

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4 Answers



Shrigopal Malani

, Chartered Accountant | AIR 16 - CA Final | Practicing CA

Answered Aug 4, 2018

The Journal Entry is very simple.

Golden Rules of accounts:

Debit the receiver, Credit the Giver

Debit the Expense, Credit the Income

Debit what comes in, Credit what goes out

Since you have incurred expense i.e. purchase so Purchase A/c will be debited.

Your cash is going out from the Business, so it will be credited.

So Final entry is

Purchase A/c Dr 75000,

To Cash A/c 75000