Cash And Credit Purchases Journal Entries With Examples
Here we study about the Cash And Credit Purchases Accounting Journal Entries with the help of Simple Examples. You may also be interested in Cash Sales Journal Entry With Example As we know that, Purchases is related to those Goods that are purchased by the business for resale purposes. Goods can be purchased for Cash or On Account. So, basically there two kinds of Purchases: 1. Cash Purchases 2. Credit Purchases 1. Cash Purchases Goods Purchased by the business for Cash are known as Cash Purchases. Cash Purchases Journal Entry With Example For Example, if the company purchased goods worth Rs. 50000 From Mr. (Supplier) For Cash, then it is recorded in the Accounting Journal of the company as: Purchases a/c 5000 Cash a/c 50000 (Goods Worth Rs. 50000 Purchased From Mr. For Cash) 2. Credi...