How to place journal entry for purchase order in books of account ?

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dhulipala  

  • Member Since Jun-2010 | Jun 24th, 2010

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
                          

Showing Answers 1 - 3 of 3 Answers

dhulipala

  • Jun 24th, 2010
 

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
                          

prasoon

  • May 14th, 2015
 

1st Qustn Anw
Received 4000
Discount allowed 1000
Bad debt. 5000
To Debtor. 10000.

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AMOL

  • Nov 16th, 2017
 

What are PO and GRN Journal?

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