Topics
Introduction to Book-Keeping and Accountancy
- Accounting
- Book-Keeping
- Accountancy
- Book-Keeping vs. Accountancy
- Basis (Methods) of Accounting System
- Qualitative Characteristics of Accounting Information
- Basic Terms in Accounting
- Transaction
- Capital and Drawings
- Debtors, Creditors and Bad Debts
- Expenditure and Its Types
- Discount and Its Types
- Solvent Person vs. Insolvent Person
- Accounting Year
- Trading Concerns vs. Not for Profit Concerns
- Concept of Goodwill
- Fundamentals of Business Earnings
- Concepts of Assets, Liabilities and Net Worth
- Accounting Principles
- Accounting Concepts
- Core Accounting Concepts
- Accounting Standards
Meaning and Fundamentals of Double Entry Book-Keeping
Journal
- Accounting Documents
- Goods and Service Tax(GST)
- Types of Accounting Documents
- Voucher
- Tax Invoice (Under GST)
- Credit Memo
- Receipt
- Cheque
- Types of Cheques
- Books of Accounts
- Books of Accounts > Journal
- Journal Entries
- Journal Entries > Goods Account
- Journal Entries > Recording Discount in Journal
- Journal Entries > Other Important Journal Entries
Ledger
Subsidiary Books
- Concept of Subsidiary Books
- Cash Book
- Cash Book > Simple Cash Book (Single Column Cash Book)
- Cash Book > Two Column Cash Book (With Cash and Bank Columns)
- Cash Book > Petty Cash Book
- Simple Petty Cash Book
- Analytical Petty Cash Book
- Purchase Book
- Purchase Return Book
- Sales Book
- Sales Return Book
- Journal Proper
Bank Reconciliation Statement
- Accounting Documents Used in Banking
- Accounting Documents Used in Banking
- Pay-in-Slip
- Withdrawal Slip
- Bank Pass Book
- Bank Statement
- Bank Advice
- Concept of Virtual Banking
- Bank Reconciliation Statement(BRS)
- Cash Book vs Pass Book : Causes of Differences
- Time Difference(Regarding BRS)
- Errors and Omission Made by Bank or Businessman
- Formats of BRS
- Preparation of BRS
- Cash Book and Pass Book Comparison for Common Period
- Cash Book and Pass Book Balances for Different Periods
- Bank Balance as per Cash Book (Favourable / Debit Balance)
- Bank Balance as per Pass Book (Favourable / Credit Balance)
- Overdraft as per Cash Book (Unfavourable / Credit Balance)
- Overdraft as per Pass Book (Unfavourable/Debit balance)
- Reconciliation of Debtors and Creditors
Depreciation
Rectification of Errors
Final Accounts of a Proprietary Concern
Single Entry System
- Concept of Single Entry System
- Single Entry System vs. Double Entry System
- Parts of Single Entry System
- Statements of Affairs
- Statement of Profit or Loss
- Statement of Profit or Loss > Net Worth Method
- Practical Problems on Single Entry System
- Definition: Purchase Book
- Other Names of Purchase Book Explained
- Format and Contents
- Example: Recording Transactions in Purchase Book
Definition : Purchase Book
A Purchase Book (also called Bought Day Book or Purchase Journal) is used to record only credit purchases of goods intended for resale or production.
Other Names of Purchase Book Explained
Purchase Journal
-
It's called a journal because it records credit purchases of goods as they happen.
Bought Day Book
- Because credit purchases are written down daily, it’s often called the Bought Day Book.
-
It shows that this book is used every day to record what was bought on credit.
Format and Contents
Format:
| Date | Name of supplier | Inward Invoice No. | L.F. | Amount (₹) |
|---|---|---|---|---|
Explanation of Each Column:
-
Date:
This is where you write the day the goods were bought on credit. It helps keep a record of when each purchase took place. -
Name of supplier:
Write the name of the person or business the goods were bought from. This makes it easy to see who the business owes money to. -
Inward Invoice No.:
This is the serial number on the bill or invoice received from the supplier. Every invoice has a unique number, which helps you quickly find the original bill if you need to check details later. -
L.F. (Ledger Folio):
"L.F." stands for Ledger Folio. It’s the page number in the ledger where this transaction has been posted. This helps you trace entries between the purchase book and the ledger for cross-checking. -
Amount (₹):
This is where you record the final amount to be paid for the goods, after deducting any trade discounts. It’s the net value of the purchase.
Example : Recording Transactions in Purchase Book
List of transactions to be recorded in the purchase book of LMN Enterprises for June 2025
| Date | Name of Supplier | Invoice No. | Goods Purchased | Value (₹) | Trade Discount (%) |
|---|---|---|---|---|---|
| 01-06-2025 | Patel Books & Co. | 2105 | 100 registers @ ₹50 each | 5,000 | 10 |
| 07-06-2025 | Sapna Traders | 3112 | 200 pencil boxes @ ₹15 each | 3,000 | 0 |
In the books of LMN Traders
Purchase Book
| Date | Name of supplier | Inward Invoice No. | L.F. | Amount (₹) |
|---|---|---|---|---|
| 2025 June |
||||
| 1 | Patel Books & Co 100 registers @ ₹50 each 5,000 |
2105 | ||
| Less - 10% T.D. 500 | 4,500 | |||
| 7 | Sapna Traders 200 pencil boxes @ ₹15 each |
3112 | 3,000 | |
| Total | 7,500 |
Ledger Posting:
Dr. Purchases Account Cr.
| Date | Particulars | L.F. | Amt (₹) | Date | Particulars | L.F. | Amt (₹) |
|---|---|---|---|---|---|---|---|
| 2025 June 30 | To Sundries as per Purchase Book | 7,500 |
Dr. Patel Books & Co Account Cr.
| Date | Particulars | L.F. | Amt (₹) | Date | Particulars | L.F. | Amt (₹) |
|---|---|---|---|---|---|---|---|
| 2025 | |||||||
| June 1 | By Purchases A/c | 4,500 |
Dr. Sapna Traders Account Cr.
| Date | Particulars | L.F. | Amt (₹) | Date | Particulars | L.F. | Amt (₹) |
|---|---|---|---|---|---|---|---|
| 2025 | |||||||
| June 7 | By Purchases A/c | 3,000 |
