General Ledger - Journal Entry

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General Ledger | Question 53 of 55

Journal Entry

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.

Total Answers and Comments: 3

Last Update: October 13, 2009 Asked by: pramod.anavatti

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Best Rated Answer

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Submitted by: sidhub

In general Accounting scenario:

Purchases a/c....Dr
   To Cash/Creditors a/c
(on making cash or credit Purchases)

On paying salaries
Salary a/c....Dr
   To Cash/Bank a/c

On Reduction of liability that is on paying the creditors

Creditors a/c......Dr
To Cash a/c

Entries in Oracle Payables

In Oracle

Charge a/c....Dr
   To Liabilitya/c
(On raising an invoice)

Liability a/c.....Dr
   To Cash Clearing a/c
(On making the payment via check)

Cash Clearing a/c.....Dr
   To Cash a/c
(On receipt of message that the check is cleared by the bank)

Above answer was rated as good by the following members:
zareef ahmad, infantpragash

November 26, 2008 09:38:17

sidhub

Member Since: November 2008 Contribution: 1

RE: Journal Entry

In general Accounting scenario:

Purchases a/c....Dr
To Cash/Creditors a/c
(on making cash or credit Purchases)

On paying salaries
Salary a/c....Dr
To Cash/Bank a/c

On Reduction of liability that is on paying the creditors

Creditors a/c......Dr
To Cash a/c

Entries in Oracle Payables

In Oracle

Charge a/c....Dr
To Liabilitya/c
(On raising an invoice)

Liability a/c.....Dr
To Cash Clearing a/c
(On making the payment via check)

Cash Clearing a/c.....Dr
To Cash a/c
(On receipt of message that the check is cleared by the bank)

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Overall Rating: +1

July 16, 2009 12:13:29

malini.007

Member Since: July 2009 Contribution: 3

RE: Journal Entry

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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October 13, 2009 06:55:01

sivareddy.bommu

Member Since: October 2009 Contribution: 2

RE: Journal Entry

Non Cash Transactions Should be Recorded In Journal Entry.

For Ex:

Salaries A/c Dr xxxxx

To Salaries Payble A/c xxxx.

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