devihappy
Oct 25, 2013, 02:21 AM
our concern purchase second hand cycle for rs. 1500
I have pass journal entry
pready
Oct 25, 2013, 05:23 AM
It depends on what the purchase is for.
If it is going to be used by the business: Debit a PP&E account and Credit Cash for the amount paid.
If you are purchasing it for resale: Debit Merchandise Inventory and Credit Cash for the amount paid.