Sir I wanted to know what is the double entry for purchases
When you purchase by credit
I think that it is debit purchases
credit trade payables
When you purchase by cash
I think that it is debit inventory
credit cash
sir if this is correct then i have a further doubt to why we don't record purchases when you buy it by cash
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Purchases on credit and cash
5y ago#1The entry for purchase on credit is correct.
For purchases for cash, the entry is Debit Purchases and Credit Cash.
I really do think that you are not watching my free lectures because these entries are fully explained in the lectures working through Chapter 3 of our lecture notes.
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