What is the journal entry when purchasing a company?
credit cash / bank (balance amount)
It is good practice to always include the vendor name in the journal entries. Journal entries are the books of "origin". When transaction occur the transaction is then recorded in the journal, at a later date or time, the entries are then added to the Ledger where each account for the company has a separate account. Adding the vendor name to the journal entry can assure that the proper account is debited or credited when…