Professional Documents
Culture Documents
Journal Entry For Credit Purchase and Cash Purchase
Journal Entry For Credit Purchase and Cash Purchase
https://www.stechies.com/accounting-entries/
https://yourfinancebook.com/accounting-entry-posted-due-to-fi-mm-integration/
Accounting and Journal Entry for Purchase Returns (With Example) (accountingcapital.com)
What is the Journal Entry for Credit Purchase and Cash Purchase?
The person to whom the money is owed is called a “Creditor” and the amount owed
is a current liability for the company. Purchase orders are commonly used in large
corporations to order goods on credit.
Purchase A/C (Type – Nominal) > Rule – Dr. all Expenses and Losses
Creditor’s A/C (Type – Personal) > Rule – Cr. the Giver
Purchase A/C (Type – Expense) > Rule – Dr. the Increase in Expenses
Creditor’s A/C (Type – Liability) > Rule – Cr. the Increase in Liability
Post a journal entry for – Goods purchased for 5,000 on credit from Mr Unreal
Cash Purchase, on the other hand, is simple and easy to account for. In case of
cash Purchase, the “Purchase account” is debited, whereas “Cash account” is
credited with the equal amount.
Purchase A/C (Type – Nominal) > Rule – Dr. all Expenses and Losses
Cash’s A/C (Type – Real) > Rule – Cr. What Goes out
Purchase A/C (Type – Expense) > Rule – Dr. the Increase in Expenses
Cash A/C (Type – Asset) > Rule – Cr. the Decrease in Asset
Post a journal entry for – Goods purchased for 5,000 in cash from Mr Unreal
Business process GR/IR & SR INVOICE Remarks
SGST A/C – DR
VENDOR A/C-CR