Cash purchases are better because an individual pays the full amount for a good and might be lucky for a discount where as in a credit purchase the individual tends to pay monthly installments and an amount of interest in every installment
Customers buy on credit for a few reasons, the main one is that at the time of purchase they may not have the required cash for the purchase. Also, customers will buy on credit because it's easier than carrying cash, they can keep their cash on hand and make payments toward the purchase instead of being out the amount of cash at that time.
With Credit card you have to pay the credit company back later, cash is paid and over with if used.
If the purchase was done on cash then, Purchase A/c Dr To Cash A/c If the purchase was done on credit, Purchases A/c Dr To Creditor A/c
cash purchase of goods: inventory (Debit) increased Cash in Hand (Credit) decreased with amount of total cost of Goods purchased
Debit: Purchases Credit: Accounts Payable Debit: Cash Credit: Sales
Cash Purchase - £112.50 Debit Bank - £112.50 Credit Purchases - £100.00 Credit VAT - £12.50
[Debit] Purchases [Credit] cash / bank
Customers buy on credit for a few reasons, the main one is that at the time of purchase they may not have the required cash for the purchase. Also, customers will buy on credit because it's easier than carrying cash, they can keep their cash on hand and make payments toward the purchase instead of being out the amount of cash at that time.
You cannot purchase chips at a casino with a credit or debit card. You have to use an ATM to get the money and then purchase the chips.
With Credit card you have to pay the credit company back later, cash is paid and over with if used.
[Debit] Vehicle Purchased [Credit] Cash / bank
The only way I know of to do this is to get a cash advance on your credit card as cashier's checks must be purchased with cash. Be aware that the APR on cash advances is higher than regular purchase APRs.
Do you use a pi number to purchase with the credit card or cash
If the purchase was done on cash then, Purchase A/c Dr To Cash A/c If the purchase was done on credit, Purchases A/c Dr To Creditor A/c
Debit Asset a/c if asset a/c is bought and credit Cash a/c OR if these are sundry supplies debit that head and credit cash acct
[Debit] Goat 300 [Credit] Cash 300
You can negoitate a better rate if you use cash than credit. Dealers like cash.