Purchase Day Book and Purchases Returns Day Book

Purchase Day Book
The Purchase Day Book records all the invoices it receives under the following headings:

  • date
  • supplier
  • purchase ledger folio (reference to the page number of the purchase ledger, in a manual system)
  • total amount invoiced
  • purchases
  • analysis of purchases (eg. telephone, electricity, etc….)

 The invoice number is not recorded because this is a record of other people’s invoices, which will have all different numbers.

Purchases Returns Book
With similar logic to the Sales Returns Book, this records goods which the business sends back to its suppliers.  The business might also receive cash refunds.  In the meantime, a debit note might be issued to the supplier.  Headings for the purchases returns book would be:

  • date
  • supplier
  • goods
  • purchase ledger folio
  • amount

6 responses to “Purchase Day Book and Purchases Returns Day Book

  1. What is the difference between the purchase day book and the purchase ledger? Apart from one seems to have more information…surely its not good if something has to be entered twice in different places?

  2. The purchase day book is merely a list of all the purchase invoices that a business has received that day. The purchase ledger is part of the double-entry system (as in debits/credits, which I’ll blog about in the future). It harks back to when bookkeeping was done manually. The use of a purchase day book can assist a business to find a particular purchase invoice. It can also assist with VAT returns. If a computerised system is being used, normally the information is only entered once, anyway.
    However, depending on the size and nature of the business, use of both a manual purchase day book and purchase ledger would probably be overkill.

  3. Which of these come under Creditor Control or Debtor Control
    1.Discount Allowed (to Customers)
    2.Discount received (from suppliers)
    3.Returns to Suppliers
    4.Returns from Customers

    How will these be posted to their respective/various ledgers and the Nominal Ledger

  4. 1. Discount Allowed to Customers and 4. Returns from Customers would be handled by the sales ledger/credit control function.
    2. Discount received from Suppliers and Returns to Suppliers would be handled through the purchase ledger function.

    Credit control (as opposed to creditOR control, which would actually be the controlling of your suppliers) is the managing of credit given to your customers. Your customers are your debtors, so by engaging in controlling a business’s debtors, you would actually be carrying the traditional function of “credit control”.

    (The double entry will be covered in a future blog!)

  5. (1) The total of the Sales Return Day Book** was under-cast by $2000
    (2) A contra entry for $2000 recorded in both the individual customer’s and Supliers accounts has not been recorded in either of the control acounts.
    (3) Apurchase invoice for $3000 was incorrectly entered in the Purchase Day Book** as $300.
    (4) The “receivables”column on the recipts side of the analysed Csh Book which tottaled $28000 was mistakely posted to the appropriate account in the nominal ledger as 20800.

    OK now could sombody plz tell me the correct Journal entries for these errors/mistakes 1,3 & 4(does these three entries have to do somthing with the SUSPENSE Acount specialy the **)

  6. Hi,
    This sounds more like a textbook question!!

    If you are running a business and making these kinds of errors, this suggests that you need to consider computerising your bookkeeping . This will enable you to correct these errors without having to know much about double-entry.

    Even if you are running a manual system, you could probably correct these errors without journals simply by correcting your original entries rather than using journals, especially if you are an accounting novice.

    You should be able to correct these errors without using a suspense account once you have presumably you have the original documentation (invoices etc…) to refer back to.