Question

when an asset is purchased in cash or an expense is incurred in cash ,cash is credited.why?​

Answer 1

Answer:

cash has to be credited

Explanation:

because we are paying cash to the for the asset which we have purchased Or an expense which is incurred. One of the golden rule of accounts is debit what comes in (asset comes in) and credit what goes out (cash goes out)

Answer 2

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Cash is an asset . On purchase of an asset against payment in cash , cash has gone out , i.e., cash has decreased . Thus , Cash Account is credited .