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Hi Mr John..You explained Cash account in lecture which says debit side receives money credit side pays out….But you haven’t elaborated other accounts’ debit,credit sides…For example if I buy goods on credit I should debit purchase account and Debit payables account…Here’s the question why? Why not vise versa (credit purchase debit payables).It’s so frustrating…Do explanations exist regarding other accounts’ both sides like cash account..Thank you very much…
Firstly, you must ask in the Ask the Tutor Forum in future if you want me to answer. This forum is for students to help each other.
Secondly, I do explain (and it is stated clearly in the lecture notes) that we debit when we have an expense or an increase in an asset; we credit when we have income or an increase in a liability.
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