Purchases Entry

This query is : Resolved

Shaikh (Querist)
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28 May 2008 I am purchasing something goods from Party A and paying by credit card. And after some time pay the credit card Bill.
The entry will be

Purchases : purchase Ac dr
credit card ac

Payment Credit card ac dr
to bank ac

Is the above entry correct?
If yes then what about the Party A ? whether we have to pass any entry relating to Party A. If yes then what ?

Shekar

Shekar (Expert)
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28 May 2008 Hi Shaikh...

Party A a/c is not required as it almost similar to cash purchases as u r paying immediately by credit card..

If u still want to pass entry..

Purchase a/c Dr
To Party A a/c

Party A a/c DR
To credit card a/c

Credit card a/c DR
To Bank a/c

Shaikh

Shaikh (Querist)
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28 May 2008 Thanks Shekar

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