WEEK THREE
TOPIC: PURCHASES JOURNAL
This is used to record goods bought for resale. The information for the Purchase Journal is obtained from the invoice. The book is used mainly to record credit purchases. It is also known as purchases day book.
E.g.
Papa Ajasco Purchase the following on credit from Marvic Nig. Ltd
May 10 Office stamp supplied 500.00
May 13 Office furniture 2,100.00
May 20 Office equipment 800.00
Sales Journal
| Date | Particulars | Folio | Invoice No | Amount (# : K) |
| May 10 | Office stamp supplied Office furniture Office equipment To Purchases Account |
01128 01135 01240 |
500.00 2,100.00 800.00 |
4. RETURN OUTWARDS JOURNAL / PURCHASES RETURNS
It is used to record all goods bought but are returned to the suppliers / sellers as a result of defect or substandard. The seller will issue a credit note to the buyer to the effect.
E.g:
Papa Ajasco returned these goods
May 15 Papa Ajasco returned office furniture 2,100.00
Return Outwards Journal
| Date | Particulars | Folio | Debit Note | Amount (# : K) |
| May 5 | Office furniture (broken in transit) |
2,100.00 |
Assignment
IBITOYE A. Purchase the following on credit from Marvic Nig. Ltd
June 10 Office stamp supplied 1500.00
June 13 Office furniture 12,100.00
June 20 Office equipment 1800.00
Write up the above transactions in appropriate journal account