When the total of the purchases day book is posted, which account is normally debited?
Correct answer: A. The purchases account
- A. The purchases account
- B. The sales account
- C. The creditors account
- D. The cash account
Explanation
The total of credit purchases of goods is posted to the debit of the purchases account. Individual supplier accounts are credited separately, so the creditors account is not debited with the total.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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