Question

purchased goods of Rs. 600,000 on account what is the nature of the account is it creditor or debit and what will be the applied rule of debit and credit?
1:Increase in assists
2:Increase in liability ​ ​

Answer 1

Opposite to debits, the “credit rule” state that all accounts that normally contain a credit balance will increase in amount when a credit is added to them and reduce when a debit is added to them. The types of accounts to which this rule applies are liabilities, equity, and income.

Answer 2

Purchased goods for 6,00,000 will increase the assets and it will be debited.

• If this  purchase is credit then there will increase in asset as well as it will increase liability.
• Purchase of goods will debit the purchase account.
• If this purchase is cash then cash will be credited as we are paying it for the purchase.
• If it is credit then the seller will be credited as it is our liability to be pay them.