Question

purchased goods from mr star on credit

Answer 1

This transaction affects two accounts purchases account (Goods are Purchased) and Mr Star account (purchases are made on credit).. purchases account is a nominal account (All expenses losses Gains income come under it).. Mr Star account is a Personal account.


The Three golden rules of accounting are

Personal account - Debit the receiver, credit the giver

Real account - Debit what comes in, credit what goes out

Nominal account - Debit All expenses and losses, credit All incomes and gains

In contention with the above rules.
purchases is an expense so it should be debited and Mr Star is the giver, so he should be credited ted..

The Journal Entry will be..

purchases a/c Dr xxxx

To Mr Star a/c xxxxx

(Being Goods Purchased from Mr Star on credit)

Answer 2

purchase a/c dr

to creditor a/c