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1 November, 14:57

Prepare a journal entry for the purchase of office supplies on September 30 for $2,500, paying $800 cash and the remainder on account. If an amount box does not require an entry, leave it blank.

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  1. 1 November, 17:47
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    Following would be the journal entry for purchase of office supplies;

    Office Supplies A/C Dr. $2500

    To Cash A/C $800

    To Accounts Payables A/C $1700

    (Being office supplies purchased partly for cash, partly on credit, being recorded)

    Purchases is a nominal account so the rule which applies is, debit all expenses and credit all incomes and gains.

    Cash is also a real account so the principle which applies is, debit what comes in and credit what goes out.

    Accounts Payable is also a real account so the same principle applies, as for cash.
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