Question

Goods given as charity credited to ___________.

• A. Charity A/c
• B. Purchase A/c
• C. Drawings A/c
• D. Sales A/c

Answer 1

The correct option is B Purchase A/c

Goods given by charity is credited to purchases account. It is an expense to the business and not sales as it is given free of cost for charity purpose. Hence, the entry will be :-

Goods given as charity A/c........ dr

To Purchases A/c