CPT Accounts Query

Page no : 2

Rajesh Jogani (CA) (60 Points)
Replied 31 July 2011

Whenever goods are purchased the intention is resale. So for every entry in the purchase account there should be either a corresponding entry in the sales account or the same should lie in the stock. Since goods have been used otherwise than resale, the initial debit to purchases account becomes incorrect. Hence it is to be credited now. We also credit the purchases account when goods are lost by fire.



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