{"id":57610,"date":"2024-04-16T01:04:58","date_gmt":"2024-04-16T01:04:58","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57610"},"modified":"2024-04-16T01:04:58","modified_gmt":"2024-04-16T01:04:58","slug":"which-of-the-following-account-will-be-debited-if-purchases-of-goods-are-made-on-credit","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-account-will-be-debited-if-purchases-of-goods-are-made-on-credit\/","title":{"rendered":"Which of the following account will be debited if purchases of goods are made on credit?"},"content":{"rendered":"

[amp_mcq option1=”Cash” option2=”Debtor” option3=”Creditor” option4=”Puchases” correct=”option4″]<\/p>\n

The correct answer is D. Purchases<\/strong>.<\/p>\n

When goods are purchased on credit, the Purchases account is debited. This is because the Purchases account represents the cost of goods that have been acquired for resale. The Creditor account is also credited, as this represents the amount that is owed to the supplier for the goods that have been purchased.<\/p>\n

The Cash account is not debited, as no cash has been exchanged at the time of purchase. The Debtor account is also not debited, as this account represents amounts that are owed to the business by customers, not amounts that the business owes to suppliers.<\/p>\n

Here is a more detailed explanation of each option:<\/p>\n