Question

Purchased goods on credit from Variety Stores



parchased a/c Dr
to variety stores a/c
​

Answer 1

Answer:

1. Your version is correct provided that you are maintain the regular account of M/S Varity Store & the transactions are carried down on regular basis plus credit terms are also allowed by the Varity Stores.

2. In the normal course, all the transactions are carried down on cash or digital transactions & in such case the entry will be

Purchase A/c Dr

To Cash/Bank (as the case may be)

3. All are subject to this condition that the goods purchased are for business purpose and varity stores are providing these goods.  If not, and further goods purchased for personal use, Drawings will be debited in place of Purchase account.

I Think this will clarify the complete issue

Explanation: