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Re: Goods worth Rs. 5,000 given as charity should be credited to 4/16/2012 11:58:32 PM
Goods worth Rs. 5,000 given as charity should be credited to
a) Charity is an expense of business, so it will be debited.
b) Goods go out, so goods or purchase account will be credited.
Charity Account Debit 5000
Purchase Account Credit 5000
Ans: (a) Purchases A/c |