Bought goods on credit from Juma 1500,job 5000 and Kennedy 8000.Record the transactions in relevant accounts?
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Oct 31, 2023
To record the transactions in relevant accounts, we will create separate accounts for each transaction.
1. Bought goods on credit from Juma for 1500: Accounts Payable (Juma) 1500 Purchases 1500
2. Bought goods on credit from Job for 5000: Accounts Payable (Job) 5000 Purchases 5000
3. Bought goods on credit from Kennedy for 8000: Accounts Payable (Kennedy) 8000 Purchases 8000
Note: The above entries assume that the company is using the periodic inventory system, where purchases are recorded separately from the cost of goods sold. If the company is using the perpetual inventory system, the entries would be slightly different.