Both entries will affect the accounting equation as the purchase of inventory would increase the assets side and the credit facility used would increase the liability side.Īfter this journal entry, the assets and liabilities increase: These business transactions would then be journalized in the general journal using the debit and credit rules in the following manner: Journal Entry 1Īs per the rules of the debit and credit system, any increase in assets (inventory) is recorded as a debit entry and an increase in liabilities (accounts payable) is recorded as a credit entry.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |