Page 32 - NOTES- CASH BOOK

Recording of Transactions - II 125

Rent Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2016
Dec. 29 Cash 3,000
Commission Received Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2016
Dec. 30 Bank 2,500

Charity Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2016
Dec. 31 Bank 800
4.2 Purchases (Journal) Book

All credit purchases of goods are recorded in the purchases journal whereas
cash purchases are recorded in the cash book. Other purchases such as
purchases of office equipment, furniture, building, are recoded in the journal
proper if purchased on credit or in the cash book if purchased for cash. The
source documents for recording entries in the book are invoices or bills received
by the firm from the supplies of the goods. Entries are made with the net
amount of the invoice. Trade discount and other details of the invoice need
not be recorded in this book. The format of the purchases journal is shown in
figure 4.6.

Purchases (Journal) Book
Date Invoice Name of Supplier L.F. Amount
No. (Account to be credited) Rs.

Fig. 4.6 : Format of purchases (journal) book
The monthly total of the purchases book is posted to the debit of purchases
account in the ledger. Individual suppliers accounts may be posted daily.
Consider the following details obtained from M/s Kanika Traders and observe
how the entries are recorded in the purchase journal.

2018-19