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Purchase of goods for cash from Mr. XYZ is to be recorded by?

Purchase of goods for cash from Mr. XYZ is to be recorded by:

(a) Debiting Purchases Account and Crediting Mr. XYZ Account

(b) Debiting Purchases Account and Crediting Cash Account

(c) Debiting Mr. XYZ Account and Crediting Cash Account

(d) Debiting Cash Account and Crediting Purchases Account

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Question added by Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate
Date Posted: 2015/03/10
IMTIAZUR RAHMAN
by IMTIAZUR RAHMAN , Administration And Customer Care Officer , Amira Enterprises (Importers, Marketing & Retail Sales), Mississauga, Ontario

The answer is (b)- Debiting Purchases A/c and Crediting Cash A/c.

Muhammad Asif
by Muhammad Asif , Accountant , Prestige Plastics LLC

debiting purchases and crediting cash account because its cash purchase not a credit so Mr. XYZ is irrelevant.

Muhammad Sajjad
by Muhammad Sajjad , Chief Accountant , Hassan Kabbani Est. for Gen. Const. of Buildings (IKK Group of Companies)

100% option b is correct.

 

Purchases Account

      to  Cash account

Deleted user
by Deleted user

Answer is

>>B)Purchase a/c dr

          To cash a/c

Rey Portin
by Rey Portin , Accountant , A. A. Busaili Sons Co. (Electrical & Mechanical Works).

Option B is the right answer:

      DR  Purchases

      CR  Cash

This entry used the Periodic Inventory System but if Perpetual Inventory System has been used, the entry would be:

      DR  Inventory or Merchandise Inventory

      CR  Cash

 

Deleted user
by Deleted user

(b) Debiting Purchases Account and Crediting Cash Account

Abd ElRahman Mohammed Idris Mohammed
by Abd ElRahman Mohammed Idris Mohammed , Internal Audit Manager , Kenana Sugar Company Limited

DR   Purchase A/C

CR   Cash      A/c

Vinod Kumar
by Vinod Kumar , leader , WEBCOR Group

Purchase a/c Dr. To cash a/c (Goods purchase on cash)

Deleted user
by Deleted user

purchase a/c Dr

   To cash a/c

Falak Sher Khan Khan
by Falak Sher Khan Khan , Accountant , Star Marketing (Pvt) Ltd

Option (B) 

Dr. Purchases

Cr. Cash

Narayanan sargunan
by Narayanan sargunan , Financial Controller , Almansoori Petroleum Industries

Inventory Account or Consumable Account Dr

To Cash

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