Question: Which statement is correct? 1. A Purchase account is a real account. 2. A purchase is credited to the Purchase account and thereafter transferred to

Which statement is correct?

1. A Purchase account is a real account.

2. A purchase is credited to the Purchase account and thereafter transferred to material expenses.

3. A purchase on credit gives a credit entry in the Accounts Receivables account.

4. The purchase of goods through the Purchase account gives a debit entry in the Purchase Account and a debit entry in the Cash/Bank account.

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