purchased prize bonds-journal entry
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I will consider Price bonds as an Asset... Purchase of prize bonds will affect two accounts..they are prize bonds and cash a/c...One asset(prize bonds) will increase..and an other asset (cash) will decrease..so first one should be debited and second should be credited being "real" accounts.
The Journal Entry for the purchase of prize bonds will be
Prize bonds a/c Dr xxxxx
To cash a/c xxxxx
(Being prize bonds bought)
When the method/mode of payment is not provided..we will consider it to be made on cash..
The Journal Entry for the purchase of prize bonds will be
Prize bonds a/c Dr xxxxx
To cash a/c xxxxx
(Being prize bonds bought)
When the method/mode of payment is not provided..we will consider it to be made on cash..
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