Question

Prepare double column cash book :-
payment for cash purchases 21,000,cash discount 700​

Answer 1

Answer:

you can only prepare for cash Book

Answer 2

Explanation:

Here..The above entry affects two accounts.. i.e., Purchases and cash... Where purchases account is a nominal account and cash is a real account.. Purchases Being a nominal account we should debit it when it incurrs us cost and cash being a real account should be credited as cash reduces during payment.

The Journal Entry for cash purchases is

Purchases a/c Dr. xxxxx

To Cash a/c. xxxxx