Purchases journal

Purchases journal - accounting period, the column total is...

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Purchases journal. The purchases journal lists all credit purchases of merchandise. Entries in this  journal usually include the date of the entry, the name of the supplier, and the amount of the  transaction. Some companies include columns to identify the invoice date and credit terms, thereby  making the purchases journal a tool that helps the companies take advantage of discounts just  before they expire. The purchases journal to the right has only one column for recording transaction  amounts. Each entry increases (debits) purchases and increases (credits) accounts payable.  Each day, individual entries are posted to the accounts payable subsidiary ledger accounts. Creditor  account numbers (or check marks if the creditor accounts are not numbered) are placed in the  purchases journal's reference column to indicate that the entries have been posted. At the end of the 
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Unformatted text preview: accounting period, the column total is posted to purchases and accounts payable in the general ledger. Account numbers are placed in parentheses below the column to indicate that the total has been posted. Companies that frequently make credit purchases of items other than merchandise use a multi-column purchases journal. For example, the purchases journal below includes columns for supplies and equipment. Of course, every purchase in the journal below must credit accounts payable; equipment purchased with a note payable or supplies purchased with cash would not be recorded in this journal. Individual entries are still posted daily to the accounts payable subsidiary ledger accounts, and each column total is posted at the end of the accounting period to the appropriate general ledger account....
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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