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.

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sivareddy.bommu  

  • Member Since Oct-2009 | Oct 13th, 2009


Non Cash Transactions Should be Recorded In Journal Entry.

For Ex:

Salaries A/c  Dr xxxxx

 To Salaries Payble A/c xxxx.

Showing Answers 1 - 0 of 0 Answers

sidhub

  • Nov 26th, 2008
 

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)

malini.007

  • Jul 16th, 2009
 

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

Nishanth Loyal

  • Sep 12th, 2012
 

Journal entry means entering the all financial transactions of the business in a chronological order using golden rules. Also the narration will be given to all the entries. Each transations having two aspects i.e. benefit giving and benefit getting. Based on journal entry the ledgers will be prepared. It is a primary records of the business transactions.

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