Question

journalists the following translations purchased goods amouniting to rs 2 ,00,000 out of which good of rs 1,80,000 were purchased on credits from Smith.​

Answer 1

Answer:

purchases a/c. Dr. 200000

To sumit a/c 180000

To cash a/c. 20000

( being purchased goods partially in credit and cash )

Answer 2

Answer:

Purchase A/c. Dr. 2,00,000

To,Smith A/c. 1,80,000

To,Cash A/c. 20,000

(Being purchased goods rs. 1,80,000. in cash and rs. 20,000 in credit from Smith)

Explanation:

When asset comes in -- Dr

When asset goes out -- Cr