Specific Purpose Books

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Special Purpose Books (also called Subsidiary Books) are specialized journals created by dividing the main journal to record similar transactions separately. They are necessary because: (1) They provi…

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Purchases Book is a special journal that records only credit purchases of goods in which the firm deals. Key points: (1) It records ONLY goods purchased on credit (cash purchases go to Cash Book), (2)…

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The Purchases Book has five main columns: (1) DATE - Records the year, month, and date of transaction in chronological order, (2) INVOICE NO. - The invoice number provided by the supplier, (3) NAME OF…

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Posting from Purchases Book to Ledger follows two steps: (1) INDIVIDUAL SUPPLIER POSTING - Each supplier's account is debited with the net amount from the invoice (usually done daily or as per the sup…

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Purchase Returns Book is a special journal that records the return of goods that were previously purchased on credit. It is used when: (1) Goods are defective or damaged, (2) Goods don't match the ord…

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Purchase Returns Book has the following columns: (1) DATE - Year, month, and date of the return transaction, (2) DEBIT NOTE NO. - The debit note number (not invoice number) issued for the return, (3) …

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Posting from Purchase Returns Book involves two steps: (1) SUPPLIER ACCOUNT POSTING - The supplier's account is DEBITED with the net amount of goods returned (usually done daily). The particulars colu…

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Sales Book is a special journal that records all credit sales of goods in which the firm normally deals. Key characteristics: (1) It records ONLY credit sales (cash sales are recorded in Cash Book), (…