The official business definition of purchase accounting journal entries is the process of creating a record of each financial transaction when buying goods or services. This process involves debiting the accounts payable and crediting the assets purchased to maintain an accurate record of assets and liabilities. Keeping detailed and accurate records of purchase transactions allows businesses to more accurately track their finances and keep their books in order. It’s essential for any company looking to succeed in an increasingly competitive marketplace. Purchase accounting journal entries are the cornerstone of smart, efficient bookkeeping, and can make all the difference in a company’s success.