NCERT · Class 11 · Accountancy · Recording of Transactions - IWhich account is debited when goods are purchased for cash?
Step-by-Step Solution
When goods are purchased for cash, the Purchases account is debited because goods are an expense or incoming asset for the business.
Detailed Options Breakdown
Option : Cash Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Recording of Transactions - I.
Option 1: Purchases Account (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Sales Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Recording of Transactions - I.
Option 3: Capital Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Recording of Transactions - I.
💡 Study Guide: This question tests core syllabus concepts from Recording of Transactions - I. For formulas, key summaries, and mock exam reference guides, read the full Recording of Transactions - I Revision Notes.