THE PURCHASES JOURNAL


The purchases Journal or Day book is a book of prime resale are recorded. In a list of transaction credit purchases are distinguished from cash purchases by having the names of the sellers indicated or by being clearly stated as such.


In purchases jointed, trade discounts are dedicated from the gross amount to arrive at the net amount payable. It is also important know that trade discounts are treated finish and last in the purchases or sales journals (Note: they have no separate ledger accounts), while cash discounts as was previously discussed are recorded finish in the cash book and posted to either cash
discount allowed account or discount received account in the ledger.
The purchases ledger has column for date of purchases, and the total amount of purchases invoice number, name of the seller, ledger folio, details of the amount of purchases information recorded in the purchase journal extracted from the purchases invoice.

ILLUSTRATION
Record the following transaction in the purchases journal of Mr. Nkwo in the year 1998 and post them to the ledger.
Time 2: purchased from Odom & Co
55 cartons of swan soap @ N910
per carton
92 cartons of Line soap @ 600 p/carton
41 cartons of Omo @ 650 per carton
nkwo was granted 9½% trade discount.
Time 12: Bought from UAC to D
30 packet Shirts @ 450 each
16 sets of under wears @ 200 per set
23 singlets @ 150 each
he received 5% trade discount
June 28: Bought from Obasi Chibueze & sons
80 dozens of Napkins @ 650 a dozen
22 dozen hand towels @ 560 a dozen
20 dozen face towels @ 260 a dozen
 solution:
Mr.Nkwo’s books

PURCHASES JOURNAL
date
Invoice No.
particulars
folio
details
amount
June 2
0060
Odom & CO
6
N
N


55 Cartons Of Swan Soap @ N 910 Each

50,050



92 Cartons Lux soap @ N 600


55,200



41 cartons of Omo @ 41 cartons of Omo @ N 650 each 650 each

26,650



Less: 95% trade discounts (o0.0095x131, 900

131,900

June 12
0063
UAC LED:

8
12,530.50
119,36050


30 packet shirts @ N 450 each

13,500



16 sets of under wears @ N 300 each

4,800



23 singlets @ N 150 each

3450



Less: 5% trade discount

21,750

June 28

Obasi Chibueze & Sons:

1087.5020,662.50



80 dozen Napkins @ N 650 each
14
52,000



22 dozen hand towels @ 560 each

12,320



20 dozen face towels @ 360

7,200
71,520
June

Total to purchases APC

16
211,552


LEDGER 3
Dr Odom & co Account.
                                       June2. purchases   119,369,.50
DR UAC LED Account or
                              June 28 purchases 71, 520
DR  purchases account or
                                 JUNE 2 sundries 211, 552
TRIAL BALANCES

Particulars

folio
dr
dr
Odom & co Lted

6
119,369,50
UAC lted

8
20,662.50
Obasi chibueze & sons



71,520.00
Purchases account




Note: invoice & folio numbers were assumed.
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