Question

what will be the journal entry of
bought goods​

Answer 1

Explanation:

• Here Purchases A/c is the purchase of goods which the company now owns it is an asset for the company to use it in the business or to sell. So debit Purchases A/c. In case of a credit purchase, “Purchase account” is debited, whereas, the “Creditor's account” is credited with the equal amount. Hi Am: Purchases A/c Dr.

Answer 2

: Since Purchase of goods is an expense, so, Purchases A/c would be debited, because according to the Rules of Debit and Credit, an expense A/c is debited . ... When an asset is reduced, the asset account is credited according to the Rules of Debit and Credit