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Pankaj

1 Points Joined December 2018

Actually i was going through a question . in that question it was writtern ki withdrawn from bank for purchases of stock and they debited the creditors accounts can someone help me with this ki what can be the reason behind this

Replies (1)

Aditya SHARMA

20 Points Joined August 2017

that is a compound entry of cash withdrawn and paid to creditor from whom the goods were previously purchased

for cash withdrawn
cash Dr
bank cr

for payment to creditor
creditor Dr
cash cr

or if directly paid through bank
creditor Dr
bank cr

for purchase of goods there has to be a separate entry.