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Question
What is a purchase book?
Solution
- A purchases book is a subsidiary book in which only credit purchases of goods are recorded.
- While recording transactions in the purchases book, it must be ascertained whether the credit purchase is related to the item in which the firm is dealing.
- Purchases of assets and purchases of goods for cash are not entered in the purchases book.
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RELATED QUESTIONS
Purchases book is used to record __________.
A periodic total of the purchases book is posted to the _____________.
Which of the following statements is not true?
Give the format of purchases book.
Prepare necessary subsidiary books in the books of Niranjan and also Sachin account and Mukil account from the following transactions for the month of February, 2017.
| 2017 | Particulars | ₹ |
| Feb. 1 | Purchased goods from Mukil Traders on credit | 12,480 |
| Feb. 4 | Goods sold to Sachin Traders on credit | 15,000 |
| Feb. 6 | Sold goods to Manish Traders on credit | 12,100 |
| Feb. 7 | Sachin Traders returned goods for which cash is not paid | 1,200 |
| Feb. 9 | Returned goods to Mukil Traders for which cash is not received | 1,500 |
| Feb. 10 | Sold goods to Manish & Co., on credit | 13,300 |
| Feb. 14 | Purchased from Mukil Traders on credit | 15,200 |
Write the difference between return inwards and return outwards
What do you understand by ledger folio?
What is difference between trade discount and cash discount?
Write the process of preparing ledger from a journal
Enter the following transactions in the Purchase Journal (Book) of M/s Gupta Traders of July 2017:
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01 |
Bought from Rahul Traders as per invoice no. 20041 |
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40 Registers @ ₹ 60 each |
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80 Gel Pens @ ₹ 15 each |
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50 note books @ ₹ 20 each |
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Trade discount 10%. |
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15 |
Bought from Global Stationers as per invoice no. 1132 |
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40 Ink Pads @ ₹ 8 each |
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50 Files @ ₹ 10 each |
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20 Color Books @ ₹ 20 each |
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Trade Discount 5% |
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23 |
Purchased from Lamba Furniture as per invoice no. 3201 |
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2 Chairs @ 600 per chair |
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1 Table @ 1,000 per table |
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25 |
Bought from Mumbai Traders as per invoice no. 1111 |
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10 Paper Rim @ ₹ 100 per rim |
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400 drawing Sheets @ ₹ 3 each |
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20 Packet waters colour @ ₹ 40 per packet |
