Wednesday 19 July 2017

Journal Entry for Vehicle Purchase

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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