Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 25 - No. 9)
What is the correct journal entry to transfer the balance in purchases to income statement?
Debit Purchases; Credit Income Summary
Debit Income Summary; Credit Purchases
Debit Cash; Credit Purchases
Debit Purchases; Credit Cash
Explanation
To close the Purchases account, debit Income Summary and credit Purchases.
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