PartnershipPartnership PartnerPartner Merchandising businessMerchandising business Retail merchandising businessRetail merchandising business MerchandiseMerchandise Wholesale merchandising businessWholesale merchandising business General amount columnGeneral amount column Special journalSpecial journal Cost of merchandiseCost of merchandise MarkupMarkup VendorVendor Purchases journalPurchases journal Special amount columnSpecial amount column Purchase invoicePurchase invoice Terms of saleTerms of sale Cash payments journalCash payments journal
An invoice used as a source document for recording a purchase on account transaction
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
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