Recording of transactions for purchase of Goods in the Books of Account with Journal Entry.
Purchase of Goods are made repeatedly in manufacturing and trading business units. One must have to know about the procedure for recording the transactions for purchase of Goods. Let's know about the commonly used Accounting Records with Journal Entry and Ledger Posting including other Record Books. One must have to keep in mind that when goods are purchased,Purchases A/c always shows debit effect. This post shares knowledge on : Journal Entry for Cash purchase of Goods and Credit Purchase of Goods. Posting of Cash Ledger and Purchases Ledger from the Journal Entry. Posting of Sundry Creditors Ledger and Purchases Ledger from the Journal Entry. Recording of Purchase Register etc. When Goods are purchased on immediate Cash Payment i.e Cash Purchase of Goods. Debit Account - Purchase Account Credit Account - Cash Account. Journal Entry : Ledger Posting : In Cash Ledger/Cash Book. In Purchases Ledger. Recording in Purchase Register. Example : In the books of M/s.Kohinoor Vegetables,Cu