1. This presentation acts as a complement to the textbook
22/09/2019
CHAPTER 31
Progression Of “Invoices and Credit Notes Received” Through The Daybooks And Ledgers
This presentation acts as a complement to the textbook
This is the Title Slide
R. DELANEY

2. R. Delaney
Progression Of “Invoices and Credit Notes Received” To Daybooks And Ledgers (1)
PURCHASES BOOK
DATE DETAILS INV. NO. NET VAT TOTAL
INVOICE NO. 43
P. POWER
20 MAIN ST.
DUBLIN PH
2/5/ P POWER
10,000
1,000
11,000
7/5/ G GREENE , ,600
16, , ,600
TO: JOE BLOGGS
1 MAIN ST
LONGFORD /5/11 ,
Assume another Invoice , No. 54, was received from G. Greene on 7/5/11. This is also shown in the Purchases Book
QTY DESCRIPTION UNIT PRICE TOTAL
TVs. MODEL TV €3, €15,000
TOTAL EX VAT €15,,000
LESS 33 1/3% TRADE DISCOUNT €5,000
NET €10,000
10% €1,000
TOTAL INCL. VAT €11,000

3. R. Delaney
Progression Of “Invoices and Credit Notes Received” To Daybooks And Ledgers (2)
PURCHASES RETURNS BOOK
DATE DETAILS CR NO. NET VAT TOTAL
CREDIT NOTE NO. 4
P. POWER
20 MAIN ST.
DUBLIN PH
6/5/ P POWER
4,000
400
4,400
9/5/ G GREENE , ,200
6, ,600
TO: JOE BLOGGS
1 MAIN ST
LONGFORD /5/11 ,
Assume another Credit Note , No. 9, was received from G. Greene on 9/5/11. This is also shown in the Purchases Returns Book
QTY DESCRIPTION UNIT PRICE TOTAL
TVs. MODEL TV €3, €6,000
TOTAL EX VAT €6,000
LESS 33 1/3% TRADE DISCOUNT €2,000
NET €4,000
10% €400
TOTAL INCL. VAT €4,400

4. Goes to Dr. side as Purchases are an expense.
R. Delaney
Progression Of “Invoices and Credit Notes Received” To Daybooks And Ledgers (3)
Purchases Book
2/5 P. Power Inv. No.4 10, , ,000
Net VAT Total
7/5 G. Green Inv. No.8 6, ,600
16, , ,600
P. Power A/C
Goes to Dr. Side
because Power is
the receiver.
6/5 To Returns ,100
2/5 By Purchases ,000
Goes to Cr. Side
because Power is
the giver.
G. Green A/C
9/5 To Returns ,200
Goes to Dr. Side
because Green is
the receiver.
7/5 By Purchases ,600
Goes to Cr. Side
because Green is
the giver.
6/5 P. Power Cr. Nt , ,100
Net VAT Total
9/5 G. Green Cr. Nt , ,200
3, ,300
Purchases Rts. Book
Purchases A/C
31/5 As per P. Book 16,000
Goes to Dr. side as Purchases are an expense.
VAT A/C
31/5 As per P. Book 1,600
Goes to the Dr. side as
this is an expense.
31/5As per P. Rts. Bk
Goes to Cr. side as this
reduces expenses.
Purchases Rts. A/c
31/5As per P. Rts. Bk. 3,000
Goes to Cr. side as this
reduces expenses.

5. Balancing The Ledgers “The Balance” is
R. Delaney
Balancing The Ledgers F F
“The Balance” is
the difference between the value of the debit entries and the value of the credit entries in a ledger account.
It goes on the smaller side to make the totals of both sides equal
P. Power A/C
6/ To Returns PRB 1,100
2/5 By Purchases PB 11,000
31/5 Balance c/d ,900
11, ,000
1/6 Balance b/d ,900
G. Green A/C
9/5 To Returns PRB 2,200
7/5 By Purchases PB 6,600
31/5 Balance c/d ,400
6, ,600
1/6 Balance b/d ,400
Purchases A/C
31/5 As per P. Bk ,000
VAT A/C
31/5 As per P.Bk PB 1,600
31/5As per P. Rts. Bk .PRB
31/5 Balance c/d ,300
1, ,600
1/ Balance b/d ,300
Purchases Rts. A/c
31/5As per P. Rts. Bk. PRB 3,000