Scribd
Upload
10 views

Purchases and Disbursement Journal

The document explains the purpose and format of the purchases journal and cash disbursement journal, which are special journals used by businesses to record credit purchases and cash outflows, respectively. It details the information included in purchase invoices and provides examples of cash disbursements. Additionally, it describes the subsidiary ledger for accounts payable, which contains detailed information about specific accounts.

Uploaded by

Diana Burgos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
10 views

Purchases and Disbursement Journal

The document explains the purpose and format of the purchases journal and cash disbursement journal, which are special journals used by businesses to record credit purchases and cash outflows, respectively. It details the information included in purchase invoices and provides examples of cash disbursements. Additionally, it describes the subsidiary ledger for accounts payable, which contains detailed information about specific accounts.

Uploaded by

Diana Burgos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

Special and

Combination Journals,
and Voucher System
PURCHASES JOURNAL
Purchases journal (also known as purchases
book and purchases day book) is a special journal used by businesses to record all credit purchases. All cash
purchases are recorded in another special journal known as cash payment journal or cash disbursements
journal.
When merchandise and their invoice are received from supplier, a responsible personnel from receiving
department compares them with the copy of the order placed by the purchase department. If quantity and
quality of merchandise conform to the order, the merchandise are accepted and transferred to the warehouse.
After it, an entry is immediately made in the purchases journal on the basis of information obtained from the
invoice provided by the seller.

The invoice provided by the supplier (or seller) is known as the purchase invoice or inward invoice. It
usually provides the following information:
1. The invoice number for the goods purchased.
2. The date on which the invoice is prepared.
3. The name, address, email, and phone number of both buyer and seller.
4. A proper description of merchandise i.e., quantity, quality, rates and total amount of the
merchandise purchased.
5. The details about terms and conditions of sale.
PURCHASES JOURNAL FORMAT
DEBITS
CREDITS

R.R. Account
DATE P.R. Other Accounts
No. Credited
Accounts Office Office
Purchases
Payable Supplies Equipment Account
P.R. Amount
Title

2014 123 Vilma Store 20,000.00 20,000.00


June 5

8 124 Nora 5,000.00 5,000.00


Supplies

10 125 Liza Comp. 15,000.00 Furnitures 15,000.00


Shop and
Fixtures
SUBSIDIARY LEDGER
ACCOUNTS PAYABLE
SUBSIDIARY LEDGER

Account: Vilma Store


A subsidiary ledger is an DATE ITEMS P.R. DEBIT CREDIT BALANCE
accounting record that
contains detailed June5,2014 Merchandise P 20,000.00 20,000.00
information about a
specific subset of a
company's accounts,
such as accounts
receivable, accounts Account: Nora Supplies
payable, inventory, or
fixed assets. DATE ITEMS P.R. DEBIT CREDIT BALANCE

June8,2014 Merchandise P 5,000.00 5,000.00

Account: Liza Comp. Shop


DATE ITEMS P.R. DEBIT CREDIT BALANCE

June10,2014 Merchandise P 15,000.00 15,000.00


CASH DISBURSEMENT JOURNAL
The cash disbursements journal (also known as cash payments journal) is a
special journal that is used by a business to manage all cash outflows. In
other words, a cash disbursements journal is used to record any transaction
that includes a credit to cash.
The usual examples of cash outflows in a business are given below:
● Payment of cash for cash purchases.
● Payment of cash for previous credit purchases, payment to accounts
payable or creditors
● Payment of cash for various expenses like rent, advertisement,
carriage, wages and salaries etc.
● Payment of cash for the purchase of a tangible or intangible asset.
● Cash refunds for goods returned by customers.
● Payment of cash for donations, charitieS.

You might also like