Monday, September 22, 2014

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

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



Purchase Day Book
DateParticularsInv.No.L.F.Amount $
January 5,2014 Ravi & Co.3400
January 15,2014Ishan Bros7000
January 25,2014More & Co.2500
January 30,2014Madhu & Co.4000
Total : 16900


Now the individual entries are posted in their respective Ledgers as shown below:
Dr
Purchases Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount
Jan 5,2014 To Sundry as per Purchase Book16900



Dr
Ravi &Co. Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 5,2014By Purchases3400


Dr
Ishan Bros Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 15,2014By Purchases7000


Dr
More & Co's Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 25,2014By Purchases2500


Dr
Madhu & Co's Account
Cr
DateParticularsJ.FAmountDateParticularsJ.FAmount

Jan 5,2014By Purchases4000

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