• 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

A business in which two or more persons combine their assets and skills

Each member of a partnership

A business that purchases and sells goods

A merchandising business that sells to those who use or consume the goods

A business that buys and resells merchandise to retail merchandising businesses

Goods that a merchandising business purchases to sell

A journal used to record only one kind of transaction

A special journal used to record only purchases of merchandise on account

A special journal used to record only cash payment transactions

A journal amount column that is not headed with an account title

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

Which journal?

• Purchased merchandise on account• Purchased merchandise for cash• Paid cash for office supplies• Paid cash on account• Paid cash for advertising• Partner withdrew cash for personal use• Partner withdrew merchandise for

personal use