Omega Stationers used Stationery for business purposes Rs. 300. Amount will be credited to:?

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Answer

Answer:

When Omega Stationers used stationery for business purposes worth Rs. 300, the amount will be credited to the following accounts:

Purchase Account: The stationery purchased by Omega Stationers will be credited to the Purchase Account. This account is used to record all the purchases made by the business. The amount of Rs. 300 will be debited to this account.

Cash/Bank Account: If Omega Stationers paid for the stationery in cash, the amount of Rs. 300 will be debited from the Cash Account. If the payment was made through a bank, the amount will be debited from the Bank Account. In either case, the Cash/Bank Account will be credited with Rs. 300.

Expense Account: The use of stationery for business purposes is considered as an expense for Omega Stationers. Hence, the amount of Rs. 300 will be debited to the Expense Account. This account is used to record all the expenses incurred by the business.

Therefore, the accounting entry for the transaction will be:

Debit Purchase Account - Rs. 300

Credit Cash/Bank Account - Rs. 300

Debit Expense Account - Rs. 300

This entry will be recorded in the books of accounts of Omega Stationers to maintain a record of the transaction. It will also help in preparing financial statements and calculating the profit/loss of the business.

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