Accounting: Special Purpose Books, Purchase Book and Posting of Purchases Book into Ledger (For CBSE, ICSE, IAS, NET, NRA 2022)

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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 Supporting: Purchase_Book_Format
DateInvoice No.Name of supplierL. F.Amount (₹)

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

Table Supporting: Format_of_Purchase_Returns_Book
DateDebit Note No.Name of supplierL. F.Amount (₹)

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:

Table Supporting: Posting_of_Purchase_Returns_Book_into_Ledger
DateDetails
2006
August 5Purchased from M/s. Naresh Electronics (Invoice No. 250)

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

August 10Bought from M/s Capital Electronics: (Invoice No. 826)

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

August 17Purchased from M/s. East Electronics: (Invoice No. 456)

15 Stereos @ ₹ 4000 per piece2 Color T. V. 14 ‘’ @ ₹ 10500 per piece

August 17Goods returned to M/s. Capital Electronics vide Debit note No. 016/2006 5 Tape Recorders @ ₹ 1650 per piece.

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

August 25Purchased form M/s. Naresh Electronics: (Invoice No. 294 10 Small T. V. @ ₹ 1200 per piece 3 Colour T. V. 17 ‘’ @ ₹ 12000 per piece. Trade Discount 10 % .
August 30Bought from M/s Pavitra Electronics: (Invoice No. 82) 20 Video cassettes @ ₹ 150 per piece Net.

Solution: Books of Harsha Electronics

Purchase (Journal) Book

Table Supporting: Posting_of_Purchase_Returns_Book_into_Ledger
DateInvoice No.Name of supplierL. F.Amount (₹)
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 Supporting: Posting_of_Purchase_Returns_Book_into_Ledger
DateDebit Note No.Name of supplierL. F.Amount (₹)
2006

August 17

016Capital Electronics7425
7,425

Posting of Purchase Journal into Ledger

Naresh Electronics A/c

Table Supporting: Posting_of_Purchase_Journal_into_Ledger
Dr.Cr.
DateParticularsJ. F.Amount (₹)DateParticularJ. FAmount (₹)
2006

Aug 05

Aug 25

Purchases

Purchases

50000

43200

Capital Electronics A/c

Table Supporting: Posting_of_Purchase_Journal_into_Ledger
Dr.Cr.
DateParticularsJ. F.Amount (₹)DateParticularJ. FAmount (₹)
2006

Aug 10

Purchases29700

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