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

Building account

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Car Account

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Purchase Account

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None of the above

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Solution

The correct option is C
Purchase Account

As cars are purchased for resale in business, purchase account is debited in this case.

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

The correct option is C Purchase Account As cars are purchased for resale in business, purchase account is debited in this case.

The correct option is C
Purchase Account

As cars are purchased for resale in business, purchase account is debited in this case.