Purchase Books

Purchases book also known as Bought Day Book is used to record all credit purchases of goods which are meant for resale in the business. Cash purchases of goods, cash and credit purchases of assets are not entered in this book.

Date Column – shows the date on which the transaction took place.
Particulars Column – This column includes the name of the seller and the particulars of goods purchased.
Inward Invoice No. Column – Reveals the serial number of the inward invoice.
LF. Column – This column shows the page number of the suppliers account in the ledger accounts.
Details Column – Reveals the amount of goods purchased and the amount of trade discount.
Total Column – This column represents the net price of the goods, i.e., the amount which is payable to the creditors after adjusting discount and expenses if any.
Remarks Column – Contains any extra information.
At the end of each month, the purchase book is totaled. The total shows the total amount of goods or materials purchased on credit.

Now Let us understand the Purchases Day book and post it in ledger with the help of the following illustration
Given below are the transactions of a firm

Date		Amount
January 5,2014	Purchased goods from Ravi & Co.	3400
" 15	Purchased goods from Ishan Bros.	7000
" 25	Purchased goods from More & Co.	2500
" 30	Purchased goods from Madhu & Co.	4000

Purchase Day Book
Date	Particulars	Inv.No.	L.F.	Amount $
January 5,2014	Ravi & Co.			3400
January 15,2014	Ishan Bros			7000
January 25,2014	More & Co.			2500
January 30,2014	Madhu & Co.			4000
				Total : 16900

Now the individual entries are posted in their respective Ledgers as shown below:

Dr		Purchases Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
Jan 5,2014	To Sundry as per Purchase Book		16900

Dr		Ravi &Co. Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
				Jan 5,2014	By Purchases		3400

Dr		Ishan Bros Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
				Jan 15,2014	By Purchases		7000

Dr		More & Co's Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
				Jan 25,2014	By Purchases		2500

Dr		Madhu & Co's Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
				Jan 5,2014	By Purchases		4000

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