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will be credited if goods are given as charity

This question belongs to Commerce Accounting
Accounting
?

_____ will be credited if goods are given as charity

Answer & Solution
Correct Answer: Option C
Purchases will be credited if goods are given as charity. When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. The amount is reduced from purchases in the trading account. It is shown as an expense on the debit side of the income statement.
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3 Comments
Pallavi Rastogi
Pallavi Rastogi 7 years ago
Y purchase account credited
K Mani
K Mani 7 years ago
How this accounts debit and credited in case goods given in charity.
Vasavi Simhadri
Vasavi Simhadri 8 years ago
Y
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