Question

Purchases of goods on credit from A is recorded as __________.

• A. Debit purchases a/c; credit cash a/c
• B. Debit A a/c; credit purchases a/c
• C. Debit purchases a/c; credit A a/c
• D. Debit A a/c; credit stock a/c

Answer 1

Answer: (C)

Debit purchases a/c; credit A a/c

Accounting is based on double entry system of accounting. Every business transaction will affects two account i.e purchase account and Mr. A's a/c.

Accounting entry will be as under:

Particulars	Debit	Credit
Purchases A/c Dr	xxx
To Mr. A		xxx
(Being the credit purchases from A)