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Explain How To Place Journal Entry For Purchase Order In Books Of Account? |
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Answer» Generally there is no journal entry at the TIME when one receives a PURCHASE order as this receipt of purchase order cannot be recognized as revenue at this point of time. But under following CIRCUMSTANCE there would be an entry: when any advance is received:- Party account Generally there is no journal entry at the time when one receives a purchase order as this receipt of purchase order cannot be recognized as revenue at this point of time. But under following circumstance there would be an entry: when any advance is received:- Cash/ Bank Dr Party account |
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