Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 34)
What is the correct order of the double entry for the purchase of goods with cash?
Debit cash, credit purchases.
Debit purchases, credit cash.
Debit sales, credit cash.
Debit cash, credit sales.
Explanation
Purchases increases and is recorded as a debit entry, while cash decreases and is recorded as a credit.
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