Which of the following are incorrect? (I) Goods sold for cash → Debit: Cash | Credit: Sale (II) Goods bought on credit from T Carter → Debit: Purchase | Credit: T Carter (III) Goods returned by us to C Barry → Debit: C Barry | Credit: Outward (IV) Van bought for cash → Debit: Purchase | Credit: Cash

Explanation

(II) Goods bought on credit from T Carter: The correct entry should be Debit: Purchases | Credit: T Carter (Correct).

(III) Goods returned by us to C Barry: The correct entry should be Debit: Outward Returns (Purchase Returns) | Credit: C Barry (Incorrect, as C Barry should not be debited).

(IV) Van bought for cash: The correct entry should be Debit: Van (Asset Account) | Credit: Cash (Incorrect, as "Purchase" is used for goods, not assets).

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