To record the purchase of goods on credit:

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To record the purchase of goods on credit: Purchases is an expense account (or an account that increases inventory), and it is increasing, so it will be debited. Dinesh is a creditor (a liability) because the goods were purchased on credit. Liabilities increase with a credit. Step 1: Identify the accounts and amounts. Purchases: ₹ 1,500 Dinesh (Creditor): ₹ 1,500 Step 2: Prepare the journal entry. Date — Particulars — L.F. — Debit (₹) — Credit (₹)January 3 — Purchases A/c Dr. — 1,500 To Dinesh's A/c — 1,500 (Being goods purchased from Dinesh on credit)
The journal entry is: |l|l|r|r| Date & Particulars & Debit (₹) & Credit (₹) January 3 & Purchases A/c Dr. & 1,500 & & To Dinesh's A/c & & 1,500 & (Being goods purchased from Dinesh on credit) & &

To record the purchase of goods on credit:

Step-by-step solution

Identify the accounts and amounts.

Prepare the journal entry.

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