Question

A seller listed a property for $96,000. The property sold for $94,000. How would the purchase price appear on a full settlement statement?

Answer 1

Debiting the buyer and crediting the seller by $94,000

Step-by-step explanation:

Since the seller listed a property for $96,000 and it sold for $94,000, so the purchase price would be selling price of the property as the property would be sold and the other person pays the money to buy the property.

So, the purchase price would appear through

Debiting the buyer and crediting the seller by $94,000

or

Buyer A/c Dr $94,000

To Seller A/c $94,000

(Being purchase of property is recorded)