Question

Purchase account is a default​

Answer 1

Answer:

The Purchase Account is a Nominal account and the Creditors Account is a Personal account. Applying Golden Rule for Nominal account and Personal account: Debit the expense or loss. Credit the giver.

Answer 2

Yes, purchase account is a default.

• The sums recorded in the purchasing account may be for raw materials that will need to be converted before they can be sold, or they may be for finished goods.
• Revenue accounts, such as sales and purchase account groups, are utilized in the profit and loss accounts.
• The Creditors Account is a Personal account, whereas the Purchase Account is a Nominal Account.
• Applying the Golden Rule to Nominal and Personal Accounts: Subtract the expenditure or loss. Give credit to the donor.