Question

Why should purchases been credited

Answer 1

Answer:

First you have to know when purchase account is debited, then only you can understand when to credit it.

Purchase account is just a name for goods purchased for the purpose of sales, so it is debited when goods are bought.

It is credited when goods are returned to suppliers or if it is donated or taken by owner or if it is destroyed etc.. It means that purchase account is credited when goods bought for selling purpose is not used for that purpose.

Hope your doubt is clarified

Explanation:

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