purchased goods for cash 6,200
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purchase A/C. DR. 6200
TO CASH A/C. 6200
TO CASH A/C. 6200
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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
Cash A/c - real A/c , money goes out of the company therefore its credited
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Journal entry
Purchases A/c Dr 6200
To cash A/c 6200
(being purchased goods paid)
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