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[Music] hi this is farhan and in this session we will see the general interest for purchase and sale of an item if there is vat or if there isnt anywhere first we will see without that okay suppose you have purchased an inventory item for 1000 so what will be the general entry it is very simple you will just dab it inventory and credit what account payable cash or bank so why this account payable is being credited if you are purchasing on credit this is your liability and increase in liability is if there is increase in liability what will happen it will be credit and why i am debiting this amount increase and asset is your debit and if we uh have purchased this on bank or cash or then then why we are crediting then this means that we are decreasing our asset and decrease in asset is what credit okay so these are the reason for this purchase debit and credit so lets do the general entry for sale so when you make the journal entry for sale cash or bank will be debit because this is o