NCERT · Class 11 · Accountancy · Recording of Transactions - IGoods given away as charity should be credited to:
Step-by-Step Solution
When goods are given away as charity, the Purchases account is credited because the stock of goods decreases for a non-trading purpose.
Detailed Options Breakdown
Option : Charity Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Recording of Transactions - I.
Option 1: Cash Account
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Recording of Transactions - I.
Option 2: Purchases Account (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Sales 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.