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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 payablesWhen you purchase by cash
I think that it is debit inventory
credit cashsir if this is correct then i have a further doubt to why we don’t record purchases when you buy it by cash
The 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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