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Purchases Day Book

This document provides information about recording credit purchases in books of original entry, specifically a purchases day book or purchases journal. It explains that when a purchase invoice is received, key details like the date, supplier, invoice number, and amount due are recorded in the purchases day book. It includes an example of a purchase invoice and how it would be recorded. It then provides examples of how to prepare a purchases day book to record multiple purchase invoices for different businesses over a period of time.

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drishti.singh0609
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420 views8 pages

Purchases Day Book

This document provides information about recording credit purchases in books of original entry, specifically a purchases day book or purchases journal. It explains that when a purchase invoice is received, key details like the date, supplier, invoice number, and amount due are recorded in the purchases day book. It includes an example of a purchase invoice and how it would be recorded. It then provides examples of how to prepare a purchases day book to record multiple purchase invoices for different businesses over a period of time.

Uploaded by

drishti.singh0609
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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BOOKS OF ORIGINAL ENTRY

PURCHASES DAY BOOK/JOURNAL


RECORDING CREDIT PURCHASES
• Whenever a purchase invoice is received the following information are recorded first in the
Purchases day book:
• Date
• Name of supplier
• Invoice number
• Amount due.
EXAMPLE PURCHASE INVOICE
INVOICE N0.J3082

WEST BAY SUPPLIES


To: Kingford stores
Date: 14 June 2021
Quantity Description Unit Price Total
$ $
40 Packets Kitchen Rolls 1.20 48.00
15 Cartons Tastie Snacks 2.80 42.00
20 tins Supa cookies 0.90 18.00

TOTAL AMOUNT DUE 108.00


Terms: payment within 30 days
INFORMATION FOUND ON THE DOCUMENT
• This document tells us that:
• Kind ford stores has made a purchase from a supplier, namely, West Bay Supplies.
• The transaction is dated 14 June 2021
• The total amount due for the goods received is $108.

• Theses are the key facts needed by Kingsford's bookkeeper in order to prepare the purchases
day book for Kingsford's Business.

• Invoices can sometimes contain many pages especially when a large quantity of goods are
bought. This does not affect the Accounting since only the final total is recorded.
HOW TO RECORD A PURCHASE INVOICE IN
THE PURCHASES DAY BOOK
• Albanie owns a hardware store. During the month of April 2021 she received the following purchases invoices from
her suppliers for goods she bought for resale.

• April 7 - Invoice 2845 Purchase invoice received from Bell Ltd for goods,$785

• April 11 - Invoice 3901 Purchase invoice received from R Khan for goods,$1450

• April 22 - Invoice 0783 Purchase invoice received from Aldo Ltd for goods,$2440

• April 29- Invoice 0442 Purchase invoice received from L Samson for goods,$635

• As each invoice are received , there are recorded in the purchases day book.
HERE IS A WORKED EXAMPLE OF ALBANIE’S
PURCHASES DAY BOOK
ALBANIE”S PURCHASES DAY BOOK Page 1
Date Supplier Invoice number Folio $
April 7 Bell Ltd 2845 PL 1 785
April 11 R Khan 3901 PL 2 1450
April 22 Aldo Ltd 0783 PL 3 2440
April 29 L Sampson 0442 PL 4 635
Total Purchases 5310
YOUR TURN TO WORK- PREPARING
PURCHASE DAY BOOKS
• Exercise 1- Vidyawattee owns a shoe shop. During May 2021, she received the following
purchase invoices:

May 3 Invoice 2730 Purchase invoice received from Whiteford Ltd for goods,$1230

May 11 Invoice 9702 Purchase invoice received from P Sackley for goods,$2720

May 24 Invoice 1818 Purchase invoice received from A Hereton for goods,$990

May 27 Invoice 2823 Purchase invoice received from Whiteford Ltd for goods ,$2440
PREPARING PURCHASE DAY BOOK
• Exercise 2
• Zaheer owns a retail unit selling men’s clothing. During January 2021,he received the
following purchase invoices:
• Prepare the accounting records necessary to record these transactions.
Jan 6 Invoice 3372 Purchase invoice received from Disley Ltd for goods ,$630

Jan 11 Invoice 4941 Purchase invoice received from P Harlew for goods,$1080

Jan 21 Invoice 3418 Purchase invoice received from Disley Ltd for goods,$1250

Jan 27 Invoice 5053 Purchase invoice received from P Harlew for goods, $1640

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