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"There is no ...

Question

"There is no need to find out the balance of goods sold account and goods purchases A/c? Why?

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Solution

Goods sold account and good Purchases A/c will be always Debit Balance. That is why there is no need to find out the balance of goods sold account and goods purchases A/C. In case of we returned some purchase then it will be credit or we create another account called purchase returns which will be Credit balance.

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