Journal Entry for Purchase

Journal Entry for Purchase

Journal entry for purchase may be recorded by debiting the purchases accounts being expense of the company and crediting the cash/bank/account payable (as case may be).

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Purchase		xxx
01-01-2017	Cash/Bank			xxx

Purchase may be incurred in three ways.

1.    Cash purchases.

2.    Purchase through bank.

3.    Credit purchase.

Journal Entry for Purchase

Journal entry for cash purchase shall be recorded by debiting the purchase account and crediting the cash account. A sample entry shown below

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Purchase		xxx
01-01-2017	Cash			xxx

Journal Entry for Purchase Through Bank

Journal entry for purchase through bank or cheque may be recorded by debiting the purchase account and crediting the bank.

Date	Particular	Ledger Folio	Dr.	Cr.
31-01-2016	Purchase		xxx
31-01-2016	Cash			xxx

Journal Entry for Credit Purchase

Journal entry for credit purchase may be recorded by debiting the purchase account and crediting the creditor. A sample entry is shown

Date	Particular	Ledger Folio	Dr.	Cr.
01-03-2015	Purchase		xxx
01-03-2015	Creditor’s			xxx