Question

In a multi-column purchases journal, debits are made in which columns?

1) cash and supplies
2) inventory and supplies
3) accounts payable and inventory
4) accounts payable and supplies

Answer 1

In a multi-column purchases journal, debits are usually recorded in the inventory column. The correct answer is option 2).

Step-by-step explanation:

In a multi-column purchases journal, debits are typically recorded for acquisitions of inventory and other items that a business intends to sell. Specifically, the columns that usually contain debits are for inventory and sometimes other expenses or asset accounts depending on a company's accounting policies.

Therefore, the correct options for which columns debits are made in a purchases journal would be either inventory alone or coupled with another account like supplies, depending on the specifics of the transaction and the company's accounting system.

However, it is important to note that accounts payable would typically be credited, not debited, when recording purchases on credit in the purchases journal. This is because when a company acquires inventory on credit, it increases accounts payable (a liability), reflecting the obligation to pay the supplier in the future.