What is the Purchases Journal?
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WHAT IS THE PURCHASES JOURNAL?
Most businesses have a large quantity of purchases on credit. After a credit purchase has been made, an invoice is usually sent from the supplier demanding payment by a certain date. A purchase invoice is a source document, which provides a record of the purchase transaction.The invoice totals are entered into a book of original entry. In this example, a purchase invoice would be entered in the purchases journal. The purchases journal can also be referred to as the purchases day book. And it will usually be produced like this….starting from the first column, is the date of the transaction i.e. purchase is entered here. Then in the next column is the name of the supplier, which the purchase was made from. The third column will have the invoice number and the fourth column will be the folio which provides a quick reference of where the other account can be found in the accounting system. For example, the general ledger is GL, the sales ledger is SL and the purchases ledger is PL. The final column is the amount of the transaction.
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