Journal Entry for Purchase Goods for Cash

Purchase Goods for Cash

In this transaction goods “comes in” on purchasing of goods and therefore purchase A/c is debited on purchase of goods and cash goes out therefore cash A/c credited the entry is as follows.




Debit Amount 

Credit Amount 


Purchase A/c Dr. 

To Cash A/c  

[Being the goods were acquired, and the payment was made in cash]  






  1. Purchase Account (Debit):

    • The purchase account is debited to record the increase in the cost of goods acquired. This is in line with the fundamental accounting principle of debiting expenses and losses.
  2. To Cash Account (Credit):

    • The cash account is credited as payment is made in cash. This aligns with the principle of crediting assets when they decrease. In this case, cash is an asset that decreases because it is used to purchase goods.
  3. Narration:

    • The narration serves as a brief explanation of the transaction. In this instance, it specifies that the goods were acquired, and the payment was made in cash.
To see a practical example, check out this journal entry for the purchase of goods for Rs.30,000."

Conclusion: This journal entry reflects a normal business transaction where goods are purchased, and payment is made immediately in cash. It reflects the dual aspect of accounting, ensuring that the accounting equation remains balanced. The purchases account reflects the increase in expenses, and the cash account reflects the decrease in assets.


Excitement surges as Prime Minister Narendra Modi inaugurates Atal Setu, India's longest sea-bridge, with an enticing announcement – toll rates set at just Rs 250 for a one-way trip and Rs 375 for a round trip in the first year! PM Modi's symbolic journey from INS Shikara in Colaba marked the grand commencement. In Navi Mumbai, he dedicated three pivotal infrastructure projects, laying the foundation stone for another. This Rs 21,200 crore investment plan, unfolding over five years, not only enhances Atal Setu's accessibility but also integrates the city's waterfronts with tunnels and flyovers.

Student Reviews

Very helpful for getting a solution. Thank you!

I like all your posts. You have done really good work. Thank you for the information you provide; it helped me a lot.

The answers are so perfect and proper 🌝

Nice explanation in full detail is very helpful.

It's very easy to learn.

Privacy Statement: We respect student privacy and do not share any personal information. Reviews are voluntarily provided to showcase genuine appreciation for our content.