I have no fuxking idea
Purchases account has debit balance as default balance while purchases returns has credit balance as default balance because it is use to reduce the purchases account so debit decreases the purchase discounts while credit increases the purchase discount account.
Either you can consider purchase is an expense and a debit balance or an asset an a debit balance
debit
A purchase you make is a DEBIT against your account.
Expense accounts should always be debit balances. The only exception is when you are recording discounts received on purchases in a separate account than the COGS account used for purchases. Discounts should be shown as a COGS account so that it is netted against purchases, and will have a credit balance. But even in this case, the total of all COGS accounts should be a debit balance.
Purchases account has debit balance as default balance while purchases returns has credit balance as default balance because it is use to reduce the purchases account so debit decreases the purchase discounts while credit increases the purchase discount account.
Either you can consider purchase is an expense and a debit balance or an asset an a debit balance
debit
A purchase you make is a DEBIT against your account.
Expense accounts should always be debit balances. The only exception is when you are recording discounts received on purchases in a separate account than the COGS account used for purchases. Discounts should be shown as a COGS account so that it is netted against purchases, and will have a credit balance. But even in this case, the total of all COGS accounts should be a debit balance.
a debit and credit
a debit and credit
a debit and credit
An Expense would normally have a debit balance.
It has debit balance as investment is an asset and all assets have debit balance .
debit balance
debit