The Purchase Day Book

The Purchase Day Book

We have already seen that the purchase ledger is a mirror image of the sales ledger. You will therefore
not be surprised to learn that the purchases day book is a mirror image of the sales
day book. Do not be confused if you find it called the purchases journal or some
other name, and do not be confused if it is a computerized system with a layout
that makes sense to computer experts.

 

A typical purchase day book looks like the following:

Date

Customer     Invoice
Folio Goods
VAT Invoice  

1
July
Jones Ltd

3001   J8
100.00   17.50
117.50
9
July
King and Co.   3002   K3
300.00   52.50
352.50  

13 July   ABC Ltd

3003   A1
50.00
8.75
58.75
20 JUly   Dodd & Carr
3004
D2   200.00
35.00   235.00
28 July   Sugar Co. Ltd
3005
S8
30.00
5.25
35.25



Total

680.00   119.00
799.00

The purchase day book is the medium through which a batch of suppliers’ invoices is posted into the nominal system and into the purchase ledger. It avoids the need to enter them individually into the nominal system. It is usually ruled off and entered monthly but this can be done at any suitable interval.

 

INSTANT TIP

 

The narrative description in the journal should not be neglected. To do so may well cause difficulties
later.

 

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