07-19-2011, 12:17 AM
In XYZ's accounts
Purchase must be recorded when the goods are recieved.
The downpayment's entry
Dr Recievable 5,000
Cr Cash 5,000
On first delivery
Dr Raw material 4,000
Cr Recievable 4,000
On second delivery
Dr Raw material 2,000
Cr Recievable 1,000
Cr Cash 1,000
Purchase must be recorded when the goods are recieved.
The downpayment's entry
Dr Recievable 5,000
Cr Cash 5,000
On first delivery
Dr Raw material 4,000
Cr Recievable 4,000
On second delivery
Dr Raw material 2,000
Cr Recievable 1,000
Cr Cash 1,000