Purchases
Journal Entry
Purchases are debited and
cash or account payable is credited. Purchases can either be on cash or credit
.For example ABC & co purchased $ 10,000 raw material from XYZ, then the
journal entry would be as under
Cash
Purchases Journal Entry
If cash was paid
immediately for purchases, then entry would be as under.
|
Date
|
Particulars
|
Dr.
|
Cr.
|
|
|
Purchases
|
$ 10,000
|
|
|
|
Cash
|
|
$ 10,000
|
Credit
purchases Journal Entry
If payment is differed for
purchases, then entry would be as under
|
Date
|
Particulars
|
Dr.
|
Cr.
|
|
|
Purchases
|
$ 10,000
|
|
|
|
Account payable
|
|
$ 10,000
|
