Question

Journal entry for purchases of goods for cash

Answer 1

Journal entry for purchases of goods for cash
Ans. By purchase
To Cash

Answer 2

3 golden rules

personal accounts - debit the received and credit the giver

real accounts -debit what comes in and credit what comes out

nominal accounts - debit all the expenses and losses, credit all the income and gains

as per the question 2 accounts affect purchase account and Cash account

Purchase account - Nominal account

cash account - real account

by applying the golden rules ,

increase in stock (asset ) and decreases in cash ( asset)

purchases is expenses therefore its debit . cash is real account which goes out of business therefore its credit .

Journal entry

Purchases A/c Dr

           To Cash A/c

(Being Purchased goods for cash )