CA INTER LIVE | Sab Debit Hota Hai… Par Goods Mein Twist Hai | Purchases vs Asset Explained

Whenever you purchase anything, the basic rule is simple: 👉 Asset comes in → Debit the asset 👉 Payment goes out → Credit Bank So normally: Pen purchased → Pen A/c Dr. to Bank Building purchased → Building A/c Dr. to Bank Investment purchased → Investment A/c Dr. to Bank No confusion. But there is one special case 👇 👉 Goods (Inventory) When you purchase goods, you don’t debit “Goods” or “Inventory” directly Instead, we use: 👉 Purchases A/c Dr. to Bank Why? Because in trading businesses, we track goods through a separate Purchases account for proper calculation of Cost of Goods Sold and Profit. So remember: For everything → Debit what you purchase But for goods → Use Purchases A/c That’s the only exception. Simple rule, one twist — and you’re sorted. #AccountingConcepts #JournalEntries #BasicsOfAccounting #CAFoundation #CAInter #CommerceStudents #AccountsMadeEasy #ConceptClarity #DoubleEntrySystem #PurchasesAccount #InventoryAccounting #LearnAccounting #StudySmart #SAGC