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Which of the following will be debited if a business purchases goods on credit?

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Question added by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group
Date Posted: 2015/07/06
Analou Aying
by Analou Aying , General Accountant , Bounce Sports Club LLC

D. Purchases.  The account purchases is debited if a company using the periodic inventory system purchased goods on credit, with a corresponding credit to the accounts payable for such creditor.  On the other hand, the inventory account is being used instead of purchases if the company is following the perpetual inventory system.

Cash. Because. The firm will purchased in credit. That base the firm will to creditor of that customer. And cash is debited to our book.

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is D) Purchases will be debited & Creditors for goods will be credited if a business purchases goods on credit.

Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Under periodic inventory system, it is usually debited to the Purchases account. Answer is D

G M Masudur Rahman
by G M Masudur Rahman , Manager Accounts & Finance , Noman Group of Industries

Purchases will be debit and creditor will be credit, answer is (D)

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