Post on 16-Dec-2015
• PartnershipPartnership• PartnerPartner• Merchandising Merchandising
businessbusiness• Retail merchandising Retail merchandising
businessbusiness• MerchandiseMerchandise• Wholesale Wholesale
merchandising merchandising businessbusiness
• General amount General amount columncolumn
• Special journal Special journal • Cost of merchandiseCost of merchandise• MarkupMarkup• VendorVendor• Purchases journalPurchases journal• Special amount Special amount
columncolumn• Purchase invoice Purchase invoice • Terms of saleTerms of sale• Cash payments Cash payments
journaljournal
The amount added to The amount added to the cost of merchandise the cost of merchandise to establish the selling to establish the selling priceprice
A business from A business from which merchandise which merchandise is purchased or is purchased or supplies or other supplies or other assets are boughtassets are bought
An agreement between a An agreement between a buyer and a seller about buyer and a seller about payment for merchandisepayment for merchandise
The price a business pays for The price a business pays for goods it purchases to sellgoods it purchases to sell
A journal amount column headed A journal amount column headed with an account titlewith an account title
An invoice used as a source An invoice used as a source document for recording document for recording a purchase on account a purchase on account transactiontransaction
New Account
• Purchases– Records cost of merchandise purchased– Normal debit balance– Cost Account– Temporary Account
Old Account
• Accounts Payable– Normal ________ balance (debit or credit)
– Increased by a _________– Decreased by a ________
New Journals
• Purchases Journal– Only records PURCHASES of merchandise
on ACCOUNT
• Cash Payments Journal– Use anytime you write a check (pay cash)
• General Journal– Use anytime you can’t use a special journal