Charity - Journal entry

‪@maaccountinghub‬
Goods gave away as a charity in this transaction two accounts are involved purchases account and charity account.
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[@prajwalhiremath5967]

How purchases account comes there

[@maaccountinghub]

Dear prajwal hiremath purchases account represent the value of goods and purchases account nature is an asset so when goods are increased in business purchases account is to be debited when the value of goods decrease in business then purchases account is to be credited. For example goods distributed as a free sample in this transaction purchases account is to be credited because asset decrease in business.

[@prajwalhiremath5967]

@@maaccountinghub thanks sir

[@maaccountinghub]

Welcome