in your example the journal entry credits a liability loan account and debits an asset account but can i debit a cash purchasing account instead of the asset account directly? the cash purchasing account then pays for the asset in an expense entry later a second journal entry repays the loan account journal entry 1 liability loan account: credit $1000 cash purchase account: debit $1000 expense entry 1 purchase order expense $1000 paid by cash purchase account journal entry 2 cash sales account: credit $1000 liability loan account: debit$1000 i tried the method of using the journal entry to debit the asset account directly and that works also as i can use that asset account to pay for the expense purchase but it seemed cleaner a cash account pays for the expense and then the asset arrives in the asset account or does my method have some other issue thanks!
Is the HP liability account the amount computer equipment at cost + interest? So the total you must pay back?
in your example the journal entry credits a liability loan account and debits an asset account
but can i debit a cash purchasing account instead of the asset account directly?
the cash purchasing account then pays for the asset in an expense entry
later a second journal entry repays the loan account
journal entry 1
liability loan account: credit $1000
cash purchase account: debit $1000
expense entry 1
purchase order expense $1000 paid by cash purchase account
journal entry 2
cash sales account: credit $1000
liability loan account: debit$1000
i tried the method of using the journal entry to debit the asset account directly
and that works also as i can use that asset account to pay for the expense purchase
but it seemed cleaner a cash account pays for the expense
and then the asset arrives in the asset account
or does my method have some other issue thanks!
Yeah that could work
@@TheQuickBooksChap cool ty man!