0
What accounts would be affected and how by a transaction to purchase supplies for cash?
Wiki User
∙ 12y ago
This is one of the simplest transactions you can do in accounting. Because you are 1. purchasing supplies and 2. you are using cash.
You already stated part of your answer in the question. The two accounts affected are 1. Cash and 2. Supplies
Because you are spending cash, cash will decrease (credited) and since you are receiving supplies, supplies will increase (debit). Remember both of these accounts are asset accounts and therefore both maintain a debit balance. To increase an asset you must debit it, to decrease it you must credit it.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What account is affected in an account journal when you avail of purchase discount for office supplies that was bought on account?
Accounts payable and Cash accounts
Is an electricity account an example of a trade account payable?
No Electricity account is non-trade accounts payable as trade accounts payable are those suppliers only from which company purchase supplies for sale purpose.
Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
What is journal entry for supplies bought on account?
Debit supplies inventoryCredit accounts payable
Accounting equation for purchase supplies for cash?
supplies cash
What account is affected in an account journal when you avail of purchase discount for office supplies that was bought on account?
Accounts payable and Cash accounts
When purchases are made on credit what three accounts are affected on a balance sheet?
Assets are affected such as supplies are increased on debit side. Accounts payable is affected by being credited or increased. Owners equity is also affected by being credited or lowered on the balance sheet.
Is an electricity account an example of a trade account payable?
No Electricity account is non-trade accounts payable as trade accounts payable are those suppliers only from which company purchase supplies for sale purpose.
Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
Can I purchase bulk daycare supplies online?
Yes, you can purchase bulk daycare supplies online. You can purchase them at www.inetgiant.com/Tags/-daycare-supplies.
How are business expenses added to my office supplies when cash is used to purchase the office supplies?
If the company reimburses you: Dr. Office Supplies and Cr. Cash. If the company does not reimburse you: Dr. Office Supplies and Cr. Accounts Payable - Owner (if you will eventually be reimbursed) or Additional Paid-in Capital (if you will never be reimbursed)
What financial statemet is accounts payable on?
Accounts payable are those items where we purchase goods or supplies from suppliers on credit and the payment of which is required to made at some future time and that;s why it is shown at liabilities side of balance sheet.
Where can I purchase gardening supplies?
You can purchase garden supplies online at Greenpathgardensupply.com. You can also get them at Gardeners.com.
What is journal entry for supplies bought on account?
Debit supplies inventoryCredit accounts payable
What is the best place to purchase accounts books?
Accounts books can be purchased from any major online retailer. They can also be purchased in person from any major retailer such as Office Max or Office Depot, or any retailer that specializes in office supplies.
Where could kennel supplies be purchased?
You can purchase kennel supplies from stores such as Target. Alternatively, you can also purchase kennel supplies online from retailers such as Amazon.
Accounting equation for purchase supplies for cash?
supplies cash
