Question

What is the journal of purchased goods by cheque

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

---------------------------------------------------------------------------------------------------------------

reason for debit and credit

Purchases A/c - real A/c , goods comes into the business , therefore its debited

Bank A/c - Personal A/c , where banker is the payer to the supplier , baker gives money as we made through cheque payment , therefore its credited

.--------------------------------------------------------------------------------------------------------------

Journal entry

Purchases A/c     Dr    

          To Bank A/c                

(being purchased goods through cheque )

Answer 2

Purchases A/C.  Dr Rs.xxx   To Bank A/C.   Rs.xxx (Being goods purchased through cheque)