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Abid forwarded goods to us.. does the "forwarded goods to us" refers to purchase? how will we record it in the cash book?

asked Aug 19, 2015 in Subsidiary Books by Mahima (23 points) 84 views

1 Answer

0 votes
'Abid forwarrded goods', goods refer  to those goods in which the business deals (sale, purchase or manufacturing).  Unless the context indicates otherwise it shall be presumed to be purchases.  This will be recorded in Cash Book only if payment is made for that.  Otherwise it will be recorded in Purchase Book (credit purchases).
If payment for this is made then journall entry for that will be:
Purchase A/c     Dr.
  To Cash A/c
In Cash Book  it will be recorded on the Receip side (Debit side) as shown below:
'To Purchase A/c  (under particulars column)     5000 (under amount column)'.
answered Aug 20, 2015 by jbsclasses (3,969 points)
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