Credit Card Journal Entries

Without knowing credit card deeply, you can not understand the journal entries relating to credit card. So, first learn credit card, then it will easy for you to understand the credit card journal entries. Credit card is one of may way to pay in USA and European countries.

Now, it is also popular in India because your can get back your money if you see that service and product provider did not give the service and product to you. You can do this through bounce your credit card payment. Second, if you have no money in your saving account, still your pay for buying the product under your credit limit.

In simple words, credit card is the loan to you against your FD in the bank. But this loan is used only for buying the product or paying for services. So, we deal it like a loan in accounting.

1.  When you get loan through credit card. 

Bank Fund Under Credit Card Dr.  ( It shows as asset in the balance sheet)

Credit Card Payable Cr. (It shows as liability in the balance sheet)

( Now, this fund is not deposit your saving bank account but you have the right on this fund. So, this fund is your asset. On credit side, same fund will be your liability. 

2. When you Pay Annual Fees on Credit Card Facility 

Credit Card Service Charges Dr. 

Saving Bank Account Cr.

3.  When You buy  goods through credit card.

Purchase Account/ Expenses /Creditor Account Dr. 

Bank Fund under credit card Account Cr.

{ If you buy the product through credit card}

4. When you Bounce any Credit Card Payment 

Bank Fund under credit card Account Dr. 

Purchase Account/ Expenses / Creditor Account Cr. 

5. For paying the amount of credit card + Interest + 

other Charges after getting its bill in next week.

Credit Card Payable Account  Dr. 

 Credit Card Interest + other Charges Account Dr.  

Saving Bank Account  Cr. 

6. When Your Saving Account's money is less than credit card payment and you are taking cash after stopping your FD. At that time, you get money after deducting all credit card payable amount and charges

Cash Account ( Cash from FD) Dr.

Credit Card Payable ( Payments of credit card done on your behalf) Dr.

Fixed Deposit in Bank

Related : How to Record Credit Card Transactions

If you are not in hurry, read whole list of journal entries.


Comments on this Website: 2
Share above Content to Your Friends


access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Credit Card Journal Entries
Credit Card Journal Entries
Accounting Education
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock