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  2. The following entries are necessary to record the purchase of business:— ADVERTISEMENTS: 1. Debit Business Purchase Account ] with the purchase price agreed upon. Credit Vendor 2. Debit various assets taken over at the value at which the company wants to record them in its books. Credit various liabilities taken over at the values agreed upon.
    www.accountingnotes.net/company-management/p…
    As purchase leads to an increase in the expense of the business and decrease in assets of the business. Therefore, expense must be debited while assets must be credited. A purchase also results in increase in inventory, however the accounting for inventory is kept separate from accounting for purchase.
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