Question

Purchase good for rs 20000 for x and supply it to y for rs 26000

Answer 1

Hi!!!

Purchase goods for Rs 2000 by paying cheque Rs 20,000.

Purchase A/c 20,000

To Bank a/c

(being goods purchased by cheque)

In the above entry purchase is Real A/c and Bank is Personal A/c

and rule of Real account is Dr what comes in and Personal A/c is Cr the giver her Purchase is debit as goods comes in the business and Bank is Cr as bank is giver of money.