unit-4-other-subsidiary-books

Unit-4 Other Subsidiary Books

In this unit we intend to discuss most of the remaining subsidiary books including Journal Proper.

Give the proforma of Purchases Journal. Explain the method of recording the transactions in Purchases Journal and its posting into ledger?

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Learning Pundits Content Team

Written on Apr 16, 2019 2:34:36 PM

When a purchase is made on credit, the supplier becomes the creditor for the firm. Hence, every credit purchase recorded in the Purchases Journal is posted on the credit side of the personal account of the supplier by writing 'By Purchases A/c' in particulars column. The Purchases Journal is totaled periodically, say, weekly or monthly. This total is posted to the debit side of Purchases Account in the ledger by writing 'To Sundries-as per Purchases Journal’. Thus, you observe that posting of Purchases Journal involves two steps: i. posting each purchase to the credit of the respective personal accounts of suppliers, ii. posting the total purchases to the debit of the Purchases Account. With this, the double entry for credit purchases is complete.