Question

purchased goods for rupees 60000 and paid cariege rupees 2,000.
journal entry?

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 - Nominal A/c , where its expense to the company therefore its debites

Carriage inwards A/c - Nominal A/c , where its the expense to the company therefore its debited

# carriage inwards like freight or courier charges .

Cash A/c  - Real A/c , where money goes out of the business therefore its credited .

# i assume its as cash purchases

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Journal entry

Purchases A/c           Dr   60000

Carriage inward A/c  Dr       2000

          To Cash A/c                               62000

(Being purchased goods)

Answer 2

Purchase A/c DR 60000
Carriage inward A/c DR 2000
To Cash/Creditor 62000