journal
A company that uses special journals should record a transaction involving the purchase of merchandise for cash ia a: Answer: Cash Payments Journal
debit owners equity 70000credit inventory 70000
Purchases on account
Sales returns journal records all sales return transactions only and no other transaction of business is recorded.
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 company that uses special journals should record a transaction involving the purchase of merchandise for cash ia a: Answer: Cash Payments Journal
debit owners equity 70000credit inventory 70000
Journal entry is required to record business transaction in books of accounts and without journal entry no business transaction can be recorded in books.
Purchases on account
they are recorded in a general journal.
Sales returns journal records all sales return transactions only and no other transaction of business is recorded.
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.
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.
"Journal" is called as book of original entry because at the occurance of any business transaction, entry is first of all recorded in journal.
Journal entries are those entries which are recorded first time when any transaction occured while adjusting entries are only recorded when there is any adjustment required in previously created journal entry.
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 the entry is recorded in the ledger.
When recording done as journal entry any business transaction is recorded in books of accounts and become part of business books of accounts.