Which of the following best describes the meaning of ‘Credit Purchases’?

Goods bought on credit

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Goods paid for

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Goods bought for resale

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All of the above

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Solution

The correct option is A Goods bought on credit
Credit purchases are goods bought on credit.

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Similar questions

Q. Prove that accounting equation is satisfied in all the following cases:
(a) Commenced business with cash ₹ 50,000.
(b) Paid rent ₹ 4,000 including ₹ 1,000 as advance.
(c) Bought goods for cash ₹ 30,000 and on credit ₹ 20,000.
(d) Sold the goods bought on credit for ₹ 25,000.
(e) Purchased furniture worth ₹ 10,000 for office use and for ₹ 5,000 for domestic use.

Q. Mention the two accounts of the following transactions and give the rule for debiting and crediting of them.
a) Shivaraj started business
b) Bought goods from Mohan
c) Goods returned to Rajesh
d) Paid rent for premises.

Q. Goods purchased on credit for manufacturing or for resale are only recorded in the sales Book.

Q. Commodities bought for resale are treated as _________.

Mr. Ramu has the following transactions in the month of July.
July 1st : Ramu started business with a capital of 75,000
2nd : Purchased goods from Manu on credit 25,000
3rd : Sold goods to Sonu 20,000 for cash
4th : Purchased goods from Meenu 15,000 for cash
5th : Sold goods to Tanu for cash 16,000
6th : Goods retuned to Manu 2,000
7th : Bought furniture for 15,000
8th : Bought goods from Zenu 12,000 on credit
9th : Cash paid to Manu 10,000
10th : Sold goods to Jane 13,500 on credit

What shall be the cash balance after considering the above transactions?

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Which of the following best describes the meaning of ‘Credit Purchases’?

The correct option is A Goods bought on creditCredit purchases are goods bought on credit.

The correct option is A Goods bought on credit
Credit purchases are goods bought on credit.