Purchased Supplies On Account & For Cash
Purchasing of Office Supplies can be treated as Assets if these are unused or in hand in the business and provide probable benefits in future according to the Accrual Basis of Accounting but if these are consumed for running the daily operations of the business, then these are considered as Expenses in Accounting as these are consumed or used during the accounting period. The company can purchase supplies on account or credit or for cash. When supplies purchased on account then Accounting Journal Entry is recorded as follows: Office Supplies a/c XXX Accounts Payable a/c XXX ...