Journal Entry for Vehicle Purchase
In this article we would be
discussing the journal entry for vehicle purchase. The vehicle shall be debited
and Cash (in case of cash purchase) and individual account of a creditor (in
case of credit purchase) shall be credited. The sample journal entry for
vehicle purchase is shown below
Date
|
Particular
|
Ledger Folio
|
Dr.
|
Cr.
|
Building
|
xxx
|
|||
Cash/Creditor
|
xxx
|
Journal Entry for Vehicle Purchase on Credit
Journal entry for vehicle
purchase on credit shall be recorded in the books of accounts by debiting the
vehicle account and crediting the creditor’s individual account. For example
the company ABC purchase a vehicle for 300,000 from Michel on credit, the
transaction shall be recorded as under;
The vehicle account shall be
debited and Michel account shall be credited in the books of account with
amount of 300,000/-.
Date
|
Particular
|
Ledger Folio
|
Dr.
|
Cr.
|
Vehicle
|
300,000
|
|||
Michel
|
2,000,000
|
Journal Entry for Vehicle Purchase on Cash
Journal entry for vehicles
purchased on cash shall be recorded in the books of account by debiting the
vehicle and crediting the cash. For Example a vehicle purchased from jimmy at
price of 2300 on cash shall be recorded as under
Date
|
Particular
|
Ledger Folio
|
Dr.
|
Cr.
|
Vehicle
|
2,300
|
|||
Cash
|
2,300
|
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