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Posting and Balancing in the Purchase Book

Once transactions are properly recorded in the purchases journal, they are posted in the ledger. The procedure for posting is stated as under.

 

 

Step 1: Entries will be posted to the credit side of the respective creditor’s (supplier’s) account in the ledger by writing “By Purchases A/c” in the particulars column.

 

 

Step 2: Periodic totals are posted to the debit of purchases account by writing “To Sundries as per Purchases book” in the particulars column.

 

Illustration 1

 

From the following transactions, post the transactions in the Purchase book of RR Ltd., a Jeans dealer.

 

Date

Invoice No.

Particulars

05-01-2012

402

Purchased on credit from Watermarks Mills, 50 Jeans at ₹ 200

09-01-2012 804 Purchased for cash from Raj Mills, 40 ‘X Category’ Jeans at ₹ 250
18-01-2012 355 Purchased on credit from Jeans World, 75 Jeans at ₹ 180
31-01-2012 586 Purchased on credit from Raj & Co., two typewriters at ₹ 3,500


Solution

 

Purchases Book of RR Ltd.

Date

Invoice No.

Name of Supplier

L.F.

Details

Amount ()

Jan. 5

402

Watermarks Mills

 

50 @ 200

10,000

Jan. 18 355 Jeans World 75 @ 180 13,500

Jan. 31

 

Purchase account (debit)

 

 

23,500


Purchase Account

Date

Particulars

L.F.

Amount

Date

Particulars

L.F.

Amount

2012

 

 

 

 

 

Jan. 31

By balance c/d

 

33,500

Jan. 9 To Cash 10,000      
Jan. 31 To Sundries as per purchase book 23,500      

 

 

 

33,500

 

 

 

33,500

 

Note : 

  • Cash purchase made on 9th January 2012 will be recorded in the cash book.
  • Credit purchase of typewriters will be recorded in the general journal.
  • In the purchase book, only credit purchases of merchandise (i.e. the goods in which the firm deals in) are recorded.





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