Important Points In Buying and Selling

Have you recorded the purchase journal correctly? Of course, every business activity is related to buying and selling a product. However, not all of them use cash, there are still some that happen on credit.

It is important for you to know the correct buying and selling journal for each transaction. These two journals are also part of accounting journals in general. To be precise, this journal is entered as a special journal in the accounting field.

Important Points In Buying and Selling

For this reason, this article will help you find out the functions of the purchase journal and sales journal when compiling financial reports.

Sale and purchase transactions that occur periodically and repeatedly, must be recorded in the purchase journal and sales journal properly, precisely and correctly.

Purchasing journal is a part of a special journal that will be used by trading companies to record all transactions for the purchase of merchandise, or goods purchased on credit. However, the cash purchases journal will be recorded in the cash disbursements journal.

In addition, the sales journal is a part of a special journal that will be recorded in the sale of goods on credit. Because the sale of merchandise on credit will result in additional accounts receivable and additional sales accounts.

In recording financial statement journals for buying and selling transactions, you need to know the exact position of the account. For example, an inventory account, when you buy, the account is a debit, whereas sales use a credit.

2 Key Points in Purchasing Journal and Sales Journal

1. Record Sales and Returns of Cash or Credit Transactions Correctly.

When you sell inventory, you need to keep two records. the first is recognition that inventory is sold through cash or receivables on a debit position and a sales account on a credit position.

2. Pay attention to the correct debit credit position when buying inventory.

If you buy inventory, the inventory account position will be debited, but the credit position of the account will be in cash or accounts payable depending on the transaction agreement you have made.

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