banner_ad

Entry

IPCC 540 views 3 replies

 

Hi,
In the journal entries -
Drawings A/c Dr. To Purchases A/c
Charity A/c Dr. To Purchases A/c
can somebody tell what is the exact reason for crediting purchases a/c in all such transactions?
Replies (3)

Dear if u paid cash to someone or something,then ur cash balance will reduced,& therefore for decrease in cash the cash is to be credited

in the same manner if the owner takes caertain business goods or the goods are given at charity then goods balance has been reduced so as a rule for decrease in asset(here goods is the asset),goods/purchase is to be credited

in the first entry goods purchased are being drawn by the ownerand in second entry good purchased are given for charity thereby decreasing the goods purchased.   since asset is decreasing it is credited following the rule DEBIT WHAT COMES IN CREDIT WHAT GOES OUT.

in the first entry goods purchased are being drawn by the ownerand in second entry good purchased are given for charity thereby decreasing the goods purchased.   since asset is decreasing it is credited following the rule DEBIT WHAT COMES IN CREDIT WHAT GOES OUT.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details