Multiple choice

Ashu purchased cash goods for Rs. 40,000 and by cheque for Rs. 20,000 from Navbharat Handlooms. Pass the necessary journal entry.

  1. Purchases a/c Dr to Cash a/c to Bank a/c

  2. Purchases a/c Dr to Cash a/c

  3. Cash a/c Dr to Purchase a/c

  4. Bank a/c Dr to Purchases a/c

  5. Goods a/c Dr to Cash a/c to Bank a/c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Purchases a/c is debited as it is an expense. Cash a/c and bank a/c are credited as payment is made and both the cash and the bank balance are decreasing.

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