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Journal entry of purchases

1.For purchase of business stock i.e. goods used for the purpose of selling further to customer for home consumption journal entry will be
  • When goods are purchased 

 DD/MM/YYYY                   Purchase A/c   Dr.                                                 xxx
(Date of invoice)                           To Vendor A/c or Creditor A/c                              xxx
                                            
                                         (Being goods purchased from Abc & co booked
                                               against invoice no: *********** )
  •   When Payment is done  

DD/MM/YYYY                  Vendor A/c or Creditor A/c   Dr.                              xxx
(Date of Payment)                               To Bank / Cash  A/c                                       xxx

                                            (Being Payment done to Abc & co booked
                                                against the purchase made)
2.For purchase of any asset e.g Car, Table, Land, Building etc.
  
  • When asset is purchased 
 DD/MM/YYYY                      Asset A/c   Dr.                                                 xxx
(Date of invoice)                       To Vendor A/c or Creditor A/c                                  xxx
                                            
                                         (Being asset purchased from Abc & co booked
                                               against invoice no: *********** )
  •  When Payment is done  

DD/MM/YYYY                  Vendor A/c or Creditor A/c   Dr.                              xxx
 (Date of Payment)                               To Bank / Cash  A/c                                      xxx

                                            (Being Payment done to Abc & co booked
                                                against the purchase of asset)


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