Stock Movement and Double-Entry

Purchase of Stock on Credit

1. Debit Purchase Account
2. Credit Vendor Account

Purchase of Stock for Cash

1. Debit Purchase Account
2. Credit Cash Account

Sales of Stock on Credit

1. Debit Customer (Debtor) Account
2. Credit Sales Account

Sales of Stock for Cash

1. Debit Cash Account
2. Credit Sales Account

Sales Return

1. Debit Sales Return Account
2. Credit Customer (Creditor) Account

Purchase Return

1. Debit Vendor (Creditor) Account
2. Credit Purchase Return Account