Journal Entry for Credit Purchase

Journal Entry for Credit Purchase

In this article we would discuss the journal entry for credit purchase. The credit purchase is recorded by debiting the purchase account and crediting the account payables (creditor account).

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

Example of journal entry for Credit purchase

1.    Credit purchases amounting 18,000 made from Ahmed.

2.    Purchases amounting 12,000 made on credit from Rehman.

In first transaction the purchases are debited being increase in expense, while the Ahmed personal account was credited being amount payable to Ahmed (increase in liability).

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Purchase		18,000
01-01-2017	Ahmed			18,000

In second transaction again the purchases account is debited being increase in the expense of the business and this time Mr. Rehman is credit, because Rehman has provided the credit.

Date	Particular	Ledger Folio	Dr.	Cr.
01-01-2017	Purchase		12,000
01-01-2017	Rehman			12,000