Purchase of merchandise Retail Double entry bookkeeping with variable chart of accounts

Page: https://excel.hpage.com/bookkeeping.html Playlist: https://www.youtube.com/watch?v=JeP58mdijnU&list=PLKnGGx0Hz5xI The retailer purchases and pays for merchandise worth 100,000 euros plus 19,000 euros in Value Added Tax. Three accounts are affected: Bank, Merchandise, and Input Tax. In this program, only two accounts are used per journal entry; therefore, payment for merchandise is recorded in two journal entries. Merchandise and Bank. This entry represents an exchange of assets. The balance of the Merchandise account increases and the balance of the Bank account decreases. There is no change to the final balance sheet. Input Tax and Bank. This entry represents an exchange of assets. The balance of the Input Tax account increases and the balance of the Bank account decreases. There is no change to the final balance sheet.