Question

purchased goods from Mohan on credit​

Answer 1

heyaa,,

journal entry will be :

Purchase a/c Dr

to Mohan.

____________________

☺

Answer 2

Your question is incomplete. Please check below the full content.

Pass necessary journal entry,

purchased goods from Mohan on credit​

Answer:

Purchases A/c   xxx

             To MohanA/c   xxx

(Being goods purchased on credit)

Explanation:

• Credit purchases occur when an organisation (or) customer purchases goods from a seller (or) supplier and agrees to pay the consideration (value or price) of the goods at a later date.
• "The Golden Rules of Accounting are-

1. Debit the receiver and credit the giver.
2. Debit what comes in and credit what goes out.
3. Debit expenses and losses, credit income and gains."

• Purchases is a nominal account as it is an expense, hence Rule 3 will be applicable here and Purchases account will be debited.
• Whereas, Mohan is personal account as it is an account of a person, hence Rule 1 will be applicable here and Mohan Account will be credited.
• As per the modern rule of accounting, increase in asset (inventory) will be debited and increase in liability (creditor Mohan) will be credited.

Hence, when there are credit purchases then Purchases A/c will be debited and Mohan will be credited.

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