Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 32)

Which entry is made for the purchase of goods on credit?

Debit Purchases, Credit Cash

Debit Purchases, Credit Accounts Payable

Debit Cash, Credit Purchases

Debit Accounts Payable, Credit Purchases

An increase in the purchases and an increase in the liability account.