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Purchase a goods from venkat for cash,it should be credited to
Whom

Answer Posted / yogendra.c

Answer is Cash A/c, As it is cash Purchase.

Journal Entry & Proof as follows:
---------------------------------
* Cash Purchase:
----------------
Dr. Purchases A/c (Real A/c, Dr.What Comes in)
Cr. Cash A/c (Real A/c, Cr. What goes out)

* Credit Purchase:
------------------
1. Purchase entry:
Dr. Puchases A/c (Real A/c, Dr.What Comes in)
Cr. Creditor A/c (Personal A/c, Credit the Giver)

2. Payment Entry to Creditor:
Dr. Creditor A/c (Personal A/c, Dr.the receiver)
Cr. Cash A/c (Real A/c, Cr. What goes out)

Is This Answer Correct ?    9 Yes 1 No



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