Example of Credit Purchases Journal Entry

Example of Credit Purchases Journal Entry

In credit purchases the amount of purchases is debit being the asset and the individual from whom the purchases were made is credited at the time of purchase. The person credited is paid in future and at that time individual /supplier debited and cash or bank account credited.

Example of Credit Purchases

1. Sauce & Saleem Co. made a purchases for 500 $ on credit from Akram on 11 october ,2014

2. Akram was paid the amount on 20 Oct,2014

Solution

Date	Particulars	Dr	Cr
11 Oct,2014	Purchases a/c	500
11 Oct ,2014	Akram a/c		500

Date	Particulars	Dr	Cr
13 Nov ,2014	Akram a/c	500
13 Nov ,2014	Bank a/c		500