Team Lead
7558 Points
Joined November 2011
The stock of material whihc is being used for personal purpose of the proprietor/partner, is not considered as an business expense, as it is not incurred for the purpose of the business. hence it is deducted from the value of purchases and purchase account is credited.
When the proprietor/partner makes some charity from his stock, then it is not considered to be used for the purpose of business & hence agains purchase account is being credited.