Special Purpose Books Part 1

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Journals are original books which records all transactions. To minimize the burden separate books are maintained, if number of transactions more. Those books are called as Special Purpose Journal Books. Example, Cash Book for all transactions relating to cash, Sales Book for all transactions relating to credit sales, Purchase Book for all transactions relating to credit purchases and Journal Proper for transactions which are not comes under any special journal.

Purchase Book:

  • All credit purchases of goods which are merchandise in nature (for resale) will be recorded in Purchase Book.

  • If the credit purchases are not for resale they will be recorded under Journal Proper.

    Ex: Purchase of furniture on credit for office use.

  • An Invoice or Bill (containing details about Invoice number, date of transactions, items purchased, terms of credit , trade discount allowed, if any, and the net amount payable) prepared by supplier is received.

Purchase Book Format:

Purchase (Journal) Book

Table of Purchase Book Format
Title: Table of Purchase Book Format

Date

Invoice No.

Name of supplier

L.F.

Amount (Rs.)

Posting of Purchases Book into Ledger:

  • Posting is done daily to relevant Supplier A/c with invoice amount on credit side.

  • At the end of month, total purchases amount is posted on debit side of Purchase A/c in the ledger by mentioning “Sundries as per Purchases Book” in particulars column.

Purchase Returns Book:

  • If purchased goods are not as per standards or defective, will be returned to supplier. Transactions relating to those returned goods are recorded in Purchase Returns Book.

  • A Debit Note (with number) is prepared by firm and send to supplier.

Format of Purchase Returns Book:

Purchase (Journal) Book

Format of Purchase Returns Book
Format of Purchase Returns Book

Date

Debit Note No.

Name of supplier

L.F.

Amount (Rs.)

Posting of Purchase Returns Book into Ledger:

  • Posting is done daily to relevant Supplier A/c with amount on debit side.

  • At the end of month, total purchase returns amount is posted on credit side of Purchase Returns A/c in the ledger by mentioning “Sundries as per Purchases Returns Book” in particulars column.

Example:

Posting of Purchase Returns Book into Ledger
Posting of Purchase Returns Book into Ledger

Date

Details

2006

August 5

Purchased from M/s.Naresh Electronics (Invoice No. 250)

5 Colour T.V @ 12500 per piece. Trade Discount on all items @20%.

August 10

Bought from M/s Capital Electronics: (Invoice No. 826)

20 Tape Recorders @ Rs.1650 per piece. Trade Discount 10% on purchases.

August 17

Purchased from M/s. East Electronics: (Invoice No. 456)

15 Stereos @ Rs.4000 per piece2 Color T.V. 14 ‘‘@ Rs. 10500 per piece

August 17

Goods returned to M/s. Capital Electronics vide Debit note No.016/2006 5 Tape Recorders @ Rs.1650 per piece.

Trade Discount @ 10% on purchases. Trade Discount @5%.

August 25

Purchased form M/s. Naresh Electronics: (Invoice No. 294 10 Small T.V. @ Rs.1200 per piece 3 Colour T.V. 17 ‘‘@ Rs.12000 per piece. Trade Discount 10%.

August 30

Bought from M/s Pavitra Electronics: (Invoice No. 82) 20 Video cassettes @ Rs.150 per piece Net.

Solution: Books of Harsha Electronics

Purchase (Journal) Book

Table of Purchase (Journal) Book
Title: Table of Purchase (Journal) Book

Date

Invoice No.

Name of supplier

L.F.

Amount (Rs.)

2006

August 5

August 10

August 17

August 25

August 30

250

826

456

294

82

Naresh Electronics

Capital Electronics

East Electronics

Naresh Electronics

Pavitra Electronics

50000

29700

76950

43200

3000

2,02,850

Purchase Returns (Journal) Book

Table of Purchase Returns (Journal) Book
Title: Table of Purchase Returns (Journal) Book

Date

Debit Note No.

Name of supplier

L.F.

Amount (Rs.)

2006

August 17

016

Capital Electronics

7425

7,425

Posting of Purchase Journal into Ledger:

Naresh Electronics A/c

Table of Posting of Purchase Journal into Ledger
Title: Table of Posting of Purchase Journal into Ledger

Dr.

Cr.

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Aug 05

Aug 25

Purchases

Purchases

50000

43200

Capital Electronics A/c

Table of Posting of Purchase Journal into Ledger
Title: Table of Posting of Purchase Journal into Ledger

Dr.

Cr.

Date

Particulars

J.F.

Amount (Rs.)

Date

Particular

J.F

Amount(Rs.)

2006

Aug 10

Purchases

29700

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