Monthly:Ottobre 2023

The credit to the Cash account decreases the company’s cash on hand, reflecting the payment for the inventory. This entry reflects the acquisition of inventory without the immediate outlay of cash, increasing both the company’s assets (inventory) and liabilities (accounts payable). To record purchases made on the account you must income summary credit Accounts Payable account for the amount you need to settle in future, instead of crediting straight Cash at Bank account. Collaterally, you must debit Purchases account in […]