Goods purchased from Sumit Traders for ₹ 55,000

Analysis of transaction :

This transaction increases purchases (expenses) and increases liabilities (M/s Sumit Traders as creditors) by ₹ 55,000.

• Increases in expenses are debited and
• Increases in liabilities are credited.

Journal-

Debit to Purchases account and credit to Sumit Traders account.