BY VENDOR Dr
TO BANK Cr
[Debit] Accounts payable xxxx [Credit] bank account xxxx
[Debit] Purchases xxxx [Credit] Cash/bank xxxx (For Down payment) [Credit] Notes Payable xxxx
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.
Credit Bank or Accounts Payable, Debit Fixed Assets.
Paying by cheque is a cash transaction. Assets: debit =increase credit=decrease
[Debit] Accounts payable xxxx [Credit] bank account xxxx
[Debit] Purchases xxxx [Credit] Cash/bank xxxx (For Down payment) [Credit] Notes Payable xxxx
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.
Some economists argue that payment by cheque is the same as giving trade credit since both involve transactions which are not made in cash .
Credit Bank or Accounts Payable, Debit Fixed Assets.
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.
Paying by cheque is a cash transaction. Assets: debit =increase credit=decrease
A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
[Debit] Bank account [Credit] Cash account
[Debit] Down payment xxxx [Credit] cash xxxx
In the accounting journal, enter the bill amount for the inventory under the credit column. Under the debit column, enter the payments made towards the inventory.
[Debit] Purchase Return [Credit] Purchases