Journey entry for purchase and sale?

Question

Accepted Answer

The journey entry for purchase and sale involves recording the transactions related to buying and selling goods or services.

For purchase, the journey entry includes recording the purchase invoice, updating the inventory, and recording the accounts payable.
For sale, the journey entry includes recording the sales invoice, updating the revenue account, and recording the accounts receivable.
The journey entry for purchase and sale ensures accurate financial records and helps in tracking the flow of goods and services.
Example: Purchase - Recording the purchase invoice, updating the inventory, and recording the accounts payable for the purchased goods.
Example: Sale - Recording the sales invoice, updating the revenue account, and recording the accounts receivable for the sold goods or services.

Accepted Answer

Puchase A/c debited to vendor/ parties A/c credited

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