Question

what is the journal entry of this statement.. goods sold to us chandrakanta 20000

Answer 1

purchase a/c dr 20000
to chandrakanta 20000

Answer 2

Journal Entry

Purchases A/C     Dr     Rs.20,000

      To Chandrakanta Rs.20,000

(Being goods purchased from Chandrakanta)

Explanation:

Chandrakanta is our creditor. Hence,credited.

According to the real account principle, debit what comes into the business.

Goods are coming into the business. Hence, purchases is debited.