Question

purchased goods from aaryan for cash ₹10000 on credit ₹20000​

Answer 1

Answer:

1.

purchased a/c .... dr.

to arayan a/c

(being goods purchased on credit)

2.

arayan a/c .... dr.

to cash a/c

(being cash paid to arayan)

Explanation:

1.

in the first journal entry purchase is expense and in its increases then it will go into the debit side and arayan is your liability so if it's increase then it goes to the credit side, as per modern rule.

2.

in the second journal entry the liability which is also our creditor has been decreased by paying cash. so liability is decreasing that's why it is debited and on other hand asset is also decreasing so it is credited, as per modern rule.

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Modern rule:-

Asset & Expense :- Dr. Cr.

Increases Decreases

Liability & Income:- Dr. Cr.

Decreases Increases

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Dr. balance asset & expense

cr. balance liability & income