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GeekInterview.com > Interview Questions > Accounting > General Ledger
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Question: Journal Entry
Answer: Every increase in expenditure & assets will be a debit, every decrease in expenditure & assets will be a credit - Put a journal entry and show a puchase transaction. |
| July 07, 2009 12:13:29 |
#2 |
| malini.007 |
Member Since: July 2009 Total Comments: 3 |
RE: Journal Entry
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We can book purchase in two ways..
If there is one time purchase or vendor is not a regular vendor, we do not require to maintain its ledger then we can directly book purchases as:
Purchase A/c Dr. 1000
Cash/Bank A/c Dr. 1000
or
But, if we are in reqular business with the vendor or we want to keep a separate record for every purchase vendor we can book purchases as.
Purchase A/c Dr. 1000
Party A/c (Vendor A/c) 1000
Party A/c (Vendor A/c) 1000
Bank/ Cash A/c 1000 |
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