Question

purchased goods on credit from ajay Rs 10000 find 2 accounts

Answer 1

Answer:

Purchase A/c and Ajay's A/c

Explanation:

Purchase A/c and Ajay's A/c are the two accounts involved with the given transaction.

When we are purchasing goods from Ajay, it's not mentioned that we have paid any cash. So we will treat this transaction as a credit transaction. Therefore Ajay is our creditor. We are liable to pay him.

Purchase A/c is an expense.

Journal entry for the given transaction is,

Purchase A/c . . . Dr - 10,000

• To Ajay - 10,000

Here expense is debited and liability is credited as per the modern rule of debit and credit.

Answer 2

commenced business with Cash 20,000