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[Debit] Purchases [Credit] cash / bank
debit purchases 1000credit cash 1000
In merchandising business, sales and purchases are the most common transactions. Special journals are used to record the transactions as they are very frequent and to make the accounting process simpler. The types of special journals used are Revenue Journals: sales journal and cash receipt journal. Expense Journal: purchase journal and cash payment journal. Earlier the accounts were hand written in the relevant books of accounts and tallied every month or half yearly or annually. However the same accounts are computerized for easier reference in the modern age.
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Adjusting entries is the name for journal entries that serve the purpose of making the accounts current. Usually, the entry is made just prior to when a company issues its financial statements.
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Purchases Journal & Cash Payments Journal.Also called as Specialized Jounal Entries. Purchases Journals record transactions that involve purchases on credit. Source documents here would probably be invoices. The purchase of inventory on credit is recorded in the purchases journal. Cash Receipts Journal record transactions that involve payments received with cash Source documents would probably be receipts and cheque butts.
The cash disbursement journal is used as a record of any cash transactions that a company has made. This is essential in the operations of a business as one could look at the register to see what cash has been paid out.
Transactions recorded in the cash receipts journal are, all receipts of cash.
Debit Job accountCredit disbursement account
Cross-footing a cash receipts journal means
Yes, the transaction of returning defective supplies and receiving a cash refund would typically be recorded in the Cash Receipts Journal. The entry would involve debiting the accounts payable or purchases returns account for the amount of the defective supplies and crediting the cash account for the amount of the refund received.
debit equipmentcredit accounts payable
Purchase journal is used to record "Credit Purchases" for resale purpose like supplies from suppliers and hence no cash purchases are recorded as cash purchases are recorded in cash payment journal.
cash receipts journal
There are two account titles in the column of the purchases journal because if a purchase is made for cash, the transaction is not recorded in the 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