Purchasing Goods and Issuing a Cheque for Rs. 10000 in Double Cash and Bank Column

When a business purchases goods, it may choose to pay for them using a cheque. In this scenario, we will explore how a business would record the purchase of goods using a cheque for Rs. 10000 in the double cash and bank column.

Step 1: Record the Purchase of Goods

The first step is to record the purchase of goods. This is done by debiting the purchases account and crediting the supplier's account. The entry would look like this:

Purchases Account Debit Rs. 10000
Supplier's Account Credit Rs. 10000

Step 2: Record the Issuance of the Cheque

The next step is to record the issuance of the cheque. This is done by debiting the bank account and crediting the cash account. The entry would look like this:

Bank Account Debit Rs. 10000
Cash Account Credit Rs. 10000

Step 3: Record the Payment of the Cheque

Finally, when the cheque is presented to the bank and the payment is made, the entry would be recorded by debiting the supplier's account and crediting the bank account. The entry would look like this:

Supplier's Account Debit Rs. 10000
Bank Account Credit Rs. 10000

Conclusion

By following these steps, a business can record the purchase of goods using a cheque for Rs. 10000 in the double cash and bank column. It is important to keep accurate records of all financial transactions in order to effectively manage the financial health of the business.

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