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Question
What is an invoice?
Solution
Entries in the purchases day book are made from invoices which are popularly known as bills. An invoice is a business document or bill or statement, prepared and sent by the seller to the buyer giving the details of goods sold, such as quantity, quality, price, total value, etc. Thus, the invoice is a source document of prime entry both for the buyer and the seller.
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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?
What is a purchase book?
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 |
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 |
