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Purchases Day Book

• Subsidiary book for recording all the credit purchases of goods with the idea of reselling

Invoice • Document made out by the seller to the buyer showing details of the goods sold and their prices especially when the goods are supplied on credit Supplier  called sales invoice Purchaser  purchases invoice .

Trade discount • Reduction in the price of goods • Allowance given to the purchaser for buying goods in large quantities. It will be deducted from the Day Books directly. .

Cash Discount • A kind of inducement to prompt payment and purchasers pay a smaller amount in full settlement provided that the payment is made within a specified period of time .

Sales Day Book • Subsidiary book for recording all the goods sold on credit. .

Returns Inwards • Subsidiary book for recording at selling price the goods returned to a business by its customers. .

Returns Outwards • Subsidiary book for recording at cost price the goods returned by a business to its suppliers. .

Cash Book • Subsidiary book for recording transactions involving the receipts and payments of cash or cheque .

Petty Cash Book • Subdivision of cash book to meet/ deal with numerous small amounts of expenditure • A fixed sum. . The amount spent will be reimbursed. which is estimated to be sufficient to cover all petty payments for a given period.

Purchases and sales of fixed assets on credit 3. Closing entries 5. Adjusting entries (Corrections of errors) 4. Writing off bad debts . Opening entries 2.Journal • Subsidiary book in which we record the details of any transaction that cannot be recorded in other subsidiary book 1.

Stock • Goods bought for resale to customers .

Folio columns • Used so that we can easily trace the other half of the double entry • Easy to ensure that double entry system has been fulfilled .

a debit note is sent to the supplier giving details of the goods returned and the reason for their return.Debit note • When we return the goods to the supplier by the customer. .

showing the amount of the allowance given by the supplier for the return of the faulty goods.Credit note • A credit note is sent to the customer by the supplier. .

Goods of wrong kind Goods not up to standard (faulty goods) Goods that are damaged Excess Goods .Reasons for the returns 1. 2. 4. 3.