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

Car

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Purchase

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Cash

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Bank

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Solution

The correct option is B Purchase
In case the business is of selling cars, cars bought for resale are considered as goods of the business entity. Hence, purchase account is debited.

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

The correct option is B PurchaseIn case the business is of selling cars, cars bought for resale are considered as goods of the business entity. Hence, purchase account is debited.

The correct option is B Purchase
In case the business is of selling cars, cars bought for resale are considered as goods of the business entity. Hence, purchase account is debited.