Multiple choice

What entry would the customer pass, when it accepts the goods purchased on approval basis?

  1. Dr. Purchase a/c & Cr. Supplier a/c

  2. Dr. Purchase a/c & Cr. Purchase on approval basis a/c

  3. Dr. Purchase a/c & Cr. Suspense a/c Dr. Purchase a/c & Cr. Suspense a/c

  4. No entry
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 The custmer will debit the purchase account on acceptance of goods sent on approval and credit the Suppliers a/c.

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