Accounting Help: How to record a credit card transaction?

Let's say I have a small business and I ordered $15000 from a Vendor. I don't have the cash to pay the vendor, so I charge it on a Business Credit Card. Now the $15000 in products will be used as inventory- My question is, How will I record that in my general ledger? And if I pay off the credit card, how will that be shown in my general ledger? Please help...



-CluelessAccounting Help: How to record a credit card transaction?
Credit ';A/P - Visa';



Later, you

Debit ';A/P - Visa'; and Credit Cash.Accounting Help: How to record a credit card transaction?
A credit card purchase is a liability... cash payable.



Debit the inventory item $15000

Credit Accounts payable (Visa, or whatever) $15000



As you pay the debt off:



Debit Accounts Payable $xxx

Credit cash $xxx





If you have interest owing:



Credit accounts payable for the Principal amount

Credit Interest paid for the interest amount

Debit cash for the combined principal and interest



Hope this helps!



Certified Management Consultant, trainer and executive coach