Debit & Credit for Purchases

Q.

In case of purchase of goods for resale, which of the following is correct?

1. Expense account is debited

2. Stock account is credited

3. Purchases account is debited

4. Bank account is debited

Q. Mr. A has purchased some goods on credit from Ram. Which of the following is correct ?

1. Purchase account is credited
2. Ram`s account is credited
3. Ram`s account is debited
4. A`s account is debited

Q.

The purchase of supplies i.e. goods for cash will result in a / an ___.

1. increase in cash and a decrease in capital

2. increase in cash and an increase in supplies

3. increase in purchases and a decrease in cash

4. increase in equipment and an increase in capital

Q. In case the business is of selling cars, purchase of cars for resale shall be debited to account.

1. Car
2. Purchase
3. Cash
4. Bank

Q.

In case the business is of selling used cars, purchase of cars for resale shall be debited to:

1. Car Account

2. Purchase Account

3. None of the above

4. Building account

Q. Excise duty on goods manufactured in the country is debited to __________.

1. Trading account
2. Profit and loss account
3. None of the above
4. Cash account

Q. While returning goods to the suppliers, a statement called "_________" which is sent to them for their information. It informs the supplier that his account has been debited to the extent of the value of the goods returned, it contains the name and address of the supplier, the description of the goods returned etc.

1. discount note
2. cash sales note
3. debit note
4. credit note

Q. The nature of the consignment account is _____________.

1. Realisation A/c
2. Bank A/c
3. Capital A/c
4. Revenue A/c

Q. Answer in once sentence only.

Which account is debited, when goods are destroyed by fire?

Q. Subsidiary book in which return of goods purchased on credit is recorded ____________.

1. Sales book
2. Purchase return book
3. Purchase book
4. Sales return book