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The weekly or monthly total of the purchase Book is
- a)posted to the debit of the Purchases Account,
- b)posted to the debit of the Sales Account,
- c)posted to the credit of the Purchases Account.
Correct answer is option 'A'. Can you explain this answer?
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The weekly or monthly total of the purchase Book isa)posted to the deb...
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posted to the debit of the purchase account?
posted to the debit of the purchase account?
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The weekly or monthly total of the purchase Book isa)posted to the deb...
Explanation:
The correct answer is A: posted to the debit of the Purchases Account. Here's why:
- The purchase book is used to record all purchases made by a business.
- The purpose of the purchase book is to keep track of all purchases and to have a record of the total amount spent on purchases over a certain period, which could be weekly or monthly.
- The total amount of purchases recorded in the purchase book needs to be posted to the appropriate account in the general ledger, which is the Purchases Account.
- The Purchases Account is a nominal account and is classified as an expense account. It is used to record the cost of goods purchased for resale or for use in the production of goods.
- Since purchases are considered an expense, the total amount of purchases recorded in the purchase book should be posted to the debit side of the Purchases Account.
- Posting the total amount of purchases to the debit side of the Purchases Account increases the balance of the account, reflecting the total amount spent on purchases during the specified period.
In conclusion, the weekly or monthly total of the purchase book is posted to the debit of the Purchases Account.
The correct answer is A: posted to the debit of the Purchases Account. Here's why:
- The purchase book is used to record all purchases made by a business.
- The purpose of the purchase book is to keep track of all purchases and to have a record of the total amount spent on purchases over a certain period, which could be weekly or monthly.
- The total amount of purchases recorded in the purchase book needs to be posted to the appropriate account in the general ledger, which is the Purchases Account.
- The Purchases Account is a nominal account and is classified as an expense account. It is used to record the cost of goods purchased for resale or for use in the production of goods.
- Since purchases are considered an expense, the total amount of purchases recorded in the purchase book should be posted to the debit side of the Purchases Account.
- Posting the total amount of purchases to the debit side of the Purchases Account increases the balance of the account, reflecting the total amount spent on purchases during the specified period.
In conclusion, the weekly or monthly total of the purchase book is posted to the debit of the Purchases Account.
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The weekly or monthly total of the purchase Book isa)posted to the debit of the Purchases Account,b)posted to the debit of the Sales Account,c)posted to the credit of the Purchases Account.Correct answer is option 'A'. Can you explain this answer?
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