A simple presentation showing the entry of credit transactions into the Credit Purchases and Credit Sales Journals.

1. Introducing Credit Transactions

2. Why use credit?

3. Credit Sales/Purchases Saves cost of cheques Buying on credit gives time to sell the goods purchased

4. Two more journals Credit Sales Summary of goods sold on credit Transactions traceable back to source document

5. JuJine 30

6. 2. Credit Purchases Journal

7. Ledgers Main ledger with control accounts – debtors control and creditors control accounts Subsidiary ledgers with individual debtors’ and creditors’ ledger accounts – also involves debtors and creditors schedules