chapter6- Accounting for Purchases, VAT and Discounts Flashcards
1
Q
What is the double entry of a credit PURCHASE?
3 parts
A
Dr Purchases
Dr VAT
Cr Payables
2
Q
What is the double entry when paying a purchase?
A
Dr Payables
Cr Bank
3
Q
What is the double entry when receiving a prompt payment discount?
(3 parts)
A
Dr Payables (Liability)
Cr VAT
Cr Discounts received
