Ask Experts Questions for FREE Help !
Ask
    moonkhan209's Avatar
    moonkhan209 Posts: 42, Reputation: 1
    Junior Member
     
    #1

    Oct 2, 2011, 03:40 PM
    Purchase journals?
    Purchased 80 copies of Practice Set ofr Dummies with cash for $28 each, Check No. 905. I want to know that how can I record it in Purchase Jornal and in Cash Payment. Very confused, please help
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #2

    Oct 2, 2011, 08:28 PM
    purchase journal is usually used for purchases made on credit the cash journal entry is debit purchases $28, credit cash $28.
    your confusion is the classic confusion when dealing with the cash side of the equation

    the purchase journal entry debits the purchase account and credits the creditor in this case; cash

    A debit transaction occurs when you have received value, that is acquire an asset. A credit transaction where you have given value, that is reduced the value of an asset or acquired a liability, thus cash has given value to purchases which has received value.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How can I get the Purchase, Cash receipts, and the sh Dispersements Journals balanced [ 1 Answers ]

Student Name: Class: Problem 07C COLO COMPANY Sales Journal AR Debit COGS Inv. Trans. Sales Debit Date Account Debited No. No. Credit Inv. Credit May 2 Hensel Company 8785 83 6,100 4,100

Preparing general journals and posting journals to general ledgers [ 7 Answers ]

I am having trouble in preparing general journal entries and posting journals to general ledgers if anyone could give me advice or some tips that would be great

If you purchase rent in advance, what journals and ledgers are effected? [ 1 Answers ]

On June 1st I Issued Check No. 583 for $9,100 to pay Amy Wong Real Estate for two month's worth of rent in advance.

Journals [ 2 Answers ]

The journal entry to recognize $1000 of commissions earned but not collected would include a debit to commissions


View more questions Search