Branch purchased 160,000 worth of merchandise for 50% cash and balance on account. Delivery charge of 3,000 paid by the branch. Requirements: a. Prepare the journal entries for both the Home Office and Branch books based on the above transactions.

Branch purchased 160,000 worth of merchandise for 50% cash and balance on account. Delivery charge of 3,000 paid by the branch. Requirements: a. Prepare the journal entries for both the Home Office and Branch books based on the above transactions.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 8MC: A customer just charged $150 of merchandise on the companys own charge card. Which special journal...

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Branch purchased 160,000 worth of merchandise for 50% cash and balance on account.
Delivery charge of 3,000 paid by the branch.

Requirements:
a. Prepare the journal entries for both the Home Office and Branch books based on the
above transactions.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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Accounting for Cash and cash equivalents

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