1. Chapter 15 Purchases day book and purchases ledger

2. Learning objectives
After you have studied this chapter, you should be able to:
Make the appropriate entries relating to credit purchases in a purchases day book
Make the correct postings from the purchases day book to the purchases ledger and general ledger
Explain the differences between the processes of recording credit sales and credit purchases in the books

3. Purchase invoices
Purchase invoices are sent to the buyers of any goods that have been bought on credit.
Any sales invoice issued by a business is a purchase invoice when received by the buying business.
The buyer enters the purchase invoice into a purchase day book before recording the details using double entry bookkeeping.

4. Purchase day book

5. Posting credit purchases
From the purchases day book:
The credit purchases are posted individually to the credit of each supplier’s account in the purchases ledger.
The total of the credit purchases is posted to the debit of the purchases account in the general ledger.

6. Activity
Post the purchases day book to the supplier accounts in the purchases ledger and the purchases account in the general ledger.

7. Activity (Continued)

8. Learning outcomes You should have now learnt:
That ‘purchases day book’ and ‘purchases journal’ are different names for the same book
That cash purchases are not entered in the purchases day book
That the purchases day book is a list of all credit purchases

9. Learning outcomes (Continued)
That the purchases day book is used to post the items to the personal accounts in the purchases ledger
That the total of credit purchases for the period is posted from the purchases day book to the debit of the purchases account in the general ledger

10. Learning outcomes (Continued)
How to make the appropriate entries relating to credit purchases in a purchases day book and make the correct postings from it to the purchases ledger and the general ledger
That the process of making entries in the books of the purchaser is very similar to that of making those in the books of the seller