Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 14)
What is the journal entry for credit purchases?
Debit Purchases, Credit Cash
Debit Cash, Credit Purchases
Debit Purchases, Credit Trade Payables
Debit Trade Payables, Credit Purchases
Explanation
The purchases account is debited (increased) and trade payables (liabilities) is credited (increased).
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