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What is journal entry for these transactions.?
1. Purchased goods on credit from T rader: 450
2. Return of goods purchased on credit last month to T Robbie: 700Ans: Dr purchase :450
Dr Trade Payables: 250
Cr Purchase return:700Sir, Why are payables debited?
And why are payables 250 when purchases are 450It is the net result of two transactions:
When goods are purchased:
DR Purchases 450
CR Payables. 450When goods are returned:
DR Payables 700
CR Returns 700So the net result of the entries on payables is a debit of 250 (700 – 450)
Sir, but isn’t irrelevant when the supplier from which goods are bought and the supplier to which goods are returned are different?
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