Page 54 - DMGT403_ACCOUNTING_FOR_MANAGERS

Unit 3: Sub-division of Journals

Purchases Day Book Notes
Date Particulars Invoice No. L.F. Amount ( )
I II III IV V

(a) Column is meant for date.
(b) Column is meant for writing details regarding name of supplier, name of articles purchased
& number i.e., quantities.

(c) Invoice No.: An Invoice is given to the seller when purchases are made on credit
(d) Ledger Folio

(e) Amount of the purchase
Thus, all the credit purchases are totalled which give us the amount of total credit purchases
made during the period.
3.4 Sales Day Book

The goods which are sold on credit are recorded in this book but if sales are made for cash or
assets are sold either for cash or on credit, they are not at all recorded in this book, but are
recorded either in the cash book or in the journal. The form of this book is similar to that of
purchases book. Following is the form of Sales Day Book.

Date Particulars Invoice No. L.F. Details ( ) Amount ( )
I II III IV V VI
Details of goods-sold-trade discount if
any total

Thus, all the credit sales are totalled which give us the amount of total credit sales made during
the period.
Invoice: An Invoice is given to the buyer when sales are made on credit.

3.5 Purchase Returns Book

This book is also known as Returns Outward Book. This book records all the returns to the
suppliers which are made during the period. The return is of goods or raw materials purchased
from the Suppliers and Return is on account of difference in quantity or quality. This book is
used when the returns are in sufficient number. If returns are not much, then it may be recorded
in the Journal. The form of Purchase Returns Book is similar to that of Purchase Day Book.
Form of Purchase Returns Book

Date Particulars L.F. Debit Note No. Amount ( )
I II III IV V

LOVELY PROFESSIONAL UNIVERSITY 49