In: Accounting
Prepare a journal entry for the purchase of a truck on April 4 for $73,000, paying $5,000 cash and the remainder on account.
If an amount box does not require an entry, leave it blank.
Journal Entry for Recording Purchase of a Truck
Particulars | Debit | Credit |
Truck A/C...Dr | 73,000 | |
To Cash A/C | 5,000 | |
To Accounts Payables | 68,000 |
( Being Truck Purchased by paying $ 5,000 Cash and Balance on Account )
Accounts Payables = Value of Truck - Cash Payments
Accounts Payables = 73,000 - 5,000
Accounts Payables = $ 68,000
The Cash Payments is $ 5,000 and Balance $ 68,000 will be considered as Accounts Payables to be paid in future.