Special Journal: Purchases and Cash Payments: Introduction
People make payments for transactions such as car insurance, or to pay installments for an item purchased on credit. Businesses also adopt similar modes of payment. Businesses buy most items on credit and keep a track of the due date for payment.
In this section, you will learn how to handle purchases and cash payments journals, and the steps involved in recording the purchase of merchandise and other assets.
The final part of this section defines the key terms used. Short questions, fill in the blanks, and multiple choice are given to test your reading and understanding.