Journal Entry and Ledger Posting for Cash payment to Sundry Creditors.

Generally Sundry Creditors of a Business Unit refer to those persons, from whom purchase of Goods or Services are made on Credit basis.

The Supplier/Vendor/Sundry Creditor from whom a Business Unit purchase goods or services on Credit, later days the total invoice amount is paid through Cash or Bank Account.

Let's discuss about the Journal Entry and Ledger posting, when payment is made by Cash to Sundry Creditors.

When payment is made to Sundry Creditors by Cash,

Sundry Creditors Account shows Debit effect and,

Cash Account shows Credit effect.

Journal Entry

Ledger Posting

In Sundry Creditors Ledger Account.

In Cash Account.

Example : 

In the Books of M/s.Swastik Store, amount paid to M/s.Vijayanand(Sundry Creditor) vide Cash for ₹9,500/- on dt.20/08/2023 as per Debit Voucher No.836.

Pass necessary Journal Entry and post them into respective Ledger Account for the above transaction.

In this transaction.

Debit Ledger is :

• M/s.Vijayanand Account

Credit Ledger is :

• Cash Account.

Journal Entry

Ledger Posting  

In M/s.Vijayanand Ledger Account

In Cash Account