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How to record an accounting entry for import purchases on account?
Wiki User
∙ 10y ago
External purchase should be recorded in your own country exchange rate not rate of the country's rate from you purchased. purchase may include actual purchasing cost and some carrying cost as well. the same treatment should be applied to the other carrying cost also...
Wiki User
∙ 10y ago
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What journals do you use to record purchases on account purchases for cash and cash payments?
Purchases journal is used to record purchases on account while Cash payment journal is used to record purchases for cash and cash payments.
What is purchases account?
Purchase account is a record account in which all inventory purchases are noted. This is commonly used with the periodic inventory method.
What is integration cost accounting system and nonintegrated cost accounting system?
An integrated accounting system requires a cash book and general journal, where a set of books contains inventory and cost accounting information. In non-integrated cost accounting, only a purchase account is required to record purchases.
How do you record drawings in accounting?
Drawings in accounting are recorded as a double entry in the cash book. This is a credit to the bank account and a debit to the cash account.
What is difference between a cash payment journal and a purchases journal?
a cash payment journal is used to record only cash payment transactions where as the purchases journal is used to record ONLY purchases on account transactions
Does a purchases journal record sales on account?
Purchase journal only records and deals in with purchases and don't deal with sales items.
What is the difference between periodic and perpitual inventory system?
Periodic Inventory System Inventory account and cost of goods sold are non-existent until the physical count at the end of the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. Perpetual Inventory System Account and the balance of costs of goods sold and inventory account exist all the time. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale - inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.
What account is used to record the transfers of assets from a business to its stockholders is?
The dividend account is used to record transfers of assets from a business to its stockholders. It is a temporary account that closes before the end of the accounting year.
What are the accounting entries to record a gratis sale?
Gifts / Donation / Charity Account - DR Inventory / Sales Account - CR
What is an accounting system?
The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other, and in the cost account no attempt is made a aseparate record of the financial account transactiona
How do you record a loan using accrual basis accounting?
cash------debit Account payable----Credit
What are the accounting journal entries to record paid on account?
Debit accounts payableCredit cash / bank
