Example of Partly paid Purchases Journal Entry

Example of Partly paid Purchases Journal Entry

In partly paid purchases the entity make some payment at the time of purchases and the balance amount is paid later on. At the time of purchases the purchases account is debit with full amount of purchases while cash a/c credited with amount paid and individual from whole purchases are made is also credited with the balance payable amount.

Example of Partly paid Purchases

1.       France & Europe Co. made a purchases for 700 $ on credit from Khan on and made a payment of  400 $ the balance amount was paid after one month.

Solution

Date	Particulars	Dr	Cr
10 Jan,2014	Purchases a/c	700
	Cash  a/c		400
10 Jan ,2014	Khan a/c		300

The following entry will be made at the time of future payment of balance amount.

Date	Particulars	Dr	Cr
13 Nov ,2014	Khan a/c	300
13 Nov ,2014	Bank a/c		300