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True or false
Accountancy
Purchase account in the ledger shows all purchases True or false
Answers (30)
Kumar G
False
False is right because it shows only credit purchases but Question says all purchases so
Kumar G
False is right because it shows only credit purchases but Question says all purchases so
Then what about cash purchases, cash book?
Then regarding purchases if they are on credit basis we will debit purchase and credit creditor account right, so then if we purchase goods which are of ordinary course of business in cash then. Purchases a/c. Dr To Cash a/c. Then why cash purchases are not included in purchases account's ledger
Sugam SM
Isn't it purchase book which will record credit purchases?
I suggest you to write journal entry and you will get answer to all your doubts
Kumar G
False is right because it shows only credit purchases but Question says all purchases so
How ? Credit purchases - Purchases a/c Dr To Creditor a/c Cash purchases - Purchases a/c Dr To Cash a/c Anyway going to purchase a/c Practically also in real life we charge to Purchase a/c naa ?
Sugam SM
Then regarding purchases if they are on credit basis we will debit purchase and credit creditor account right, so then if we purchase goods which are of ordinary course of business in cash then. Purchases a/c. Dr To Cash a/c. Then why cash purchases are not included in purchases account's ledger
Purchase book records credit purchases of goods only. Whenever, goods are purchased, purchase account is debited. In all cases of purchases, goods come into business, so purchases account has to be debited.
Kumar G
Purchase book records credit purchases of goods only. Whenever, goods are purchased, purchase account is debited. In all cases of purchases, goods come into business, so purchases account has to be debited.
The question says PURCHASE LEDGER and not PURCHASE BOOK
Kumar G
Purchase book records credit purchases of goods only. Whenever, goods are purchased, purchase account is debited. In all cases of purchases, goods come into business, so purchases account has to be debited.
They didn't mention about creditors they just asked about purchases account. Question is miscellaneous
Avasarala Vivek Aditya
The question says PURCHASE LEDGER and not PURCHASE BOOK
Yes bro that's what I am saying all the purchases of ordinary course of business are debited and respective creditor or cash is credited
Reetikaa R
False coz purchase of fixed assets is not recorded
They didn't mention about that I think if they don't mention about fixed assets we need to assume those purchases to be of ordinary course of business
Jitendra Kumar
Yes, It is false. Question says that the Purchase account in the ledger shows all purchases. But in the Purchase account, we record only credit purchases. and cash purchases come under cash A/c.
Cash purchases are also posted to Purchases Account. However, purchases of fixed assets do not appear in purchases account.
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