Question

Purchase goods from gurdeep on credit for rs 21000

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Purchases A/c - real A/c , goods comes into the business , therefore its debited

Gurdeep  A/c - personal A/c , where gurdeep is the supplier of goods and giver of goods therefore its credited

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Journal entry

Purchases A/c     Dr    21000

          To Gurdeep A/c                21000            

(being purchased goods for credit  )

Answer 2

Purchases A/C. Dr. Rs.21,000

To Gurudeep A/C. Rs.21,000

(Being goods purchased from Gurudeep on credit)