A Purchase of Supplies For Cash is Recorded In The?

A purchase of supplies for Cash or Bank is recorded in the Cash Payments Journal as it is used to record cash payments transactions only. All Credit Purchases are recorded in the Purchase Journal or Purchase Day cook. Supplies is considered as a Current Asset when these  are utilized within one year otherwise, these are considered as Non Current Assets / Fixed Assets.

For example, if Mr. A purchased Papers & Inks worth Rs. 5000 from his supplier for cash, then following Entry is passed in the Cash Payments Journal as shown below:

                             Office Supplies Account  5000

                                                                     Cash Account / Bank Account 5000

                                           (Purchased Supplies Rs. 5000 For Cash / Bank)