Credit Purchases

Credit purchase is where the purchaser proposes a credit card, which is a guarantee to pay, by the credit card company, who then demand for payment the card possessor for the purchase price plus an interest rate, for the service of not having to pay at the time that the items are bought. In an accounting point of view, cash purchases come into view in the cash book. A credit purchase proceedings a transaction in a customer’s name presenting that we repay some money to that customer to be paid later.