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TSR Wiki > Study Help > Subjects and Revision > Revision Notes > Accounting > A Level Accounting Module 1 - Purchases daybook

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Purchases daybook

Contents 1 Entering into the purchases journal 2 Posting credit purchases to the purchases ledger 3 Also See 4 Comments

Entering into the purchases journal

When purchasing goods on credit, the procedure is similar to the one outlined in a previous section for credit sales. The source document that would be used as the basis for entering up the transactions is the purchases invoice. The purchase invoices is actually the same document as the sales invoice, it is just considered from the point of view of the buyer, rather than the seller (i.e. the firm selling the goods will send out a sales invoice, and this becomes the purchase invoice for the firm receiving it).

Posting credit purchases to the purchases ledger

We now have a separate purchases ledger containing all the creditor (supplier) accounts. The double entry procedure for credit purchases is as follows:

Credit purchases are posted one by one, to the credit of each supplier's account in the purchases ledger. At the end of each period the total of the credit purchases is posted to the debit side of the purchases account in the general ledger.

Effect on purchases ledger:

D Henson

-	-	-	2002	-	£
-	-	-	Feb 3	Purchases	290

D Morehen

2002	-	£	2002	-	£
-	-	-	Feb 8	Purchases	1,800

M Bridges

2002	-	£	2002	-	£
-	-	-	Feb 13	Purchases	455

A Smith

2002	-	£	2002	-	£
-	-	-	Feb 19	Purchases	980

As with sales, each will be posted when the purchase occurs. However, at the end of the month, it is the total for the month that is transferred from the daybook to the purchases account in the general ledger

Effect on general ledger:

Purchases

2002	-	£	2002	-	£
Feb 28	Total credit purchases for month	3,525	-	-	-

Also See

• Double entry bookkeeping
• Daybooks and ledgers
• Cashbooks and petty cashbooks
• The sales daybook
• Purchases daybook
• Returns daybooks
• The Journal
• Trading and profit and loss accounts
• Balance sheets
• Features of the VAT system
• VAT and the double entry system
• The trial balance
• Bank reconciliation statements
• Control accounts
• Suspense accounts and the correction of errors
• Computers in accounting

Comments

These notes are aimed at people studying for AQA A Level Accounting Unit 1, but will also be suitable for other courses and exam boards.

Originally submitted by duke_stix on TSR Forums.