Subsidiary books are books of prime entry and original entry where transactions and events are first recorded before being transfer to the ledger. 

They are the books where transactions of similar nature are recorded in chronological order.

It is important to note that the recording of transactions in subsidiary books is not a double entry.

There are many subsidiary books of accounts, but, for the purpose of today's topic, we will be looking at just purchases journals.

We will explore other subsidiary books in subsequent posts

Purchase journal

Purchases journal is used for recording purchases made on credit. It records every transactions involving purchase invoice. 

Therefore, the purchase invoice is the source document for purchases day book.

A purchases journal is only used to record credit purchases. Cash purchases are not recorded in the purchases journal.

Only credit purchases are entered in a purchasing journal. The purchasing journal does not include transactions involving cash purchases.

Rather, cash transactions journal are recorded in the cash book.

Purchases journal is used to record all goods bought on credit after which the totals are then debited to the purchases account in the general ledger while the individual suppliers account are also credited.

It is important to note that the purchase of assets are not recorded in the purchases journal.

Purchases journal is sometimes called Purchases day book.

Format of the Purchases Journal

The format of the purchases journal is as follow:



incoming invoice



As can be seen above, there are five columns of the purchases journal namely; date, particular, L.F, amount and invoice number.

1. Date column: This is the column of the purchases journal used to record the date the company received the invoice for a credit purchase.

2. Details column: This column of the purchases journal is used to record the information about suppliers from whom a business purchases goods on credit.

3. Invoice number column: Companies received different invoices from different companies when they make our credit purchases and these invoices usually have invoice number on them.

The invoice column of a purchases journal is used to record the invoice number relating to a particular transaction.

Unlike sales journal where the invoice number are sequential, the invoice number of the purchases journal is not sequential because the company received invoices from different suppliers.

4. L.F column: L.F stands for ledger folio. The page number of the ledger book where the relevant account appears is entered in the ledger folio column.

The L.F column can also be used to record the relevant ledger account that is related to a transaction.

For example, the purchases ledger (PL) is the ledger account for purchase journal transaction. Hence, we use P.L to represent it.

5. Amount: This is self-explanatory. The amount column of the purchases journal is used to record the net amount payable to the supplier 

Example of purchases journal

The following information relates to Omolola trader for June 2015. Record them in their relevant day's book. 

June 2. Purchase goods worth $25,000 on credit from Kingsley, invoice number 3002.

June 6. Bought goods on credit worth $16500 from barrack, invoice number 3501

June 11. Bought goods on credit woryj $12700 from Donald, invoice no 3402

June 15. Purchased goods of $30000 from Kingsley on credit, invoice no 3406

June 20. Purchase goods of $17,000 from James on credit, invoice no 3456.

DateDetailsinvoice noL.fAmount
June 2Kingsley3002PL25,000
" 6Barrack3501PL16,500
" 11Donald3402PL12,700
" 15Kingsley3406PL30,000
" 20James3456PL17000
Total posted to the purchases a/c GL101,200

That will be all for now. In our next post, we will be looking at the sales journal.

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