purchased goods for cash Rs 10,000 and from Naveen Rs6,000
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Purchase a/c dr. Rs.23,500
To Cash a/c Rs. 3,500
To Creditor's a/c Rs. 20,000
Since goods come in (real accounts rule - debit what comes in) debit purchase account with whole 23,500 since thats the amount of goods that came in.
Credit what goes out (real accounts rule) since cash went out with 3500 since thats the amount of cash that went out.
Credit the giver (personal accounts rule) since the creditor gave us goods worth Rs.20,000 so credit him with the same amount.
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