Question

While passing the entry for goods bought on credit, A/c is debited and A/c is credited.

• A. purchase
• B. sales
• C. creditors
• D. debtors

Answer 1

Answer: (A), (C)

The correct options are
A purchase
C creditors

Purchase increases when goods are bought, and purchase can be increased by debiting purchase A/c and creditors increases when goods are purchased on credit, and creditors increase by crediting them.