Journal entery

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2012 Sir,
I have a doubt in Journal entry.
Suppose i am a construction company and I constructs houses and buildings and after furnishing them I sell them. Now my question is that what will be the journal of purchasing electronic fittings, sanitary
materials, furniture to be fitted in the houses and buildings for the purpose of selling them.

electronics a/c dr.
To cash/creditor a/c
OR
purchases a/c dr.
to cash

tell methe correct entery
and also tellme the the accounting procedure

Ki$hor B

Ki$hor B (Expert)
Follow

09 June 2012 entry could be

Equipment - "A/B/C etc" Dr.
To Cash/Vendor

Should you buy an apartment/bunglow with the intention of a resale then it'll be recorded as

Purchases Dr
to Cash/Party.

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