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    Muhammad Ubaid Ullah
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    The document discusses two journals - the purchase journal and return inwards journal. The purchase journal is used to record credit purchases and its source document is the purchase invoice. It debits the purchases account and credits the trade payables account. The return inwards journal is used to record credit returns and its source documents are debit notes received and credit notes issued. It debits the return inwards account and credits the trade receivables account for returned goods.

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    The document discusses two journals - the purchase journal and return inwards journal. The purchase journal is used to record credit purchases and its source document is the purchase invoice. It debits the purchases account and credits the trade payables account. The return inwards journal is used to record credit returns and its source documents are debit notes received and credit notes issued. It debits the return inwards account and credits the trade receivables account for returned goods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views1 page

    New Microsoft Word Document

    Uploaded by

    Muhammad Ubaid Ullah
    The document discusses two journals - the purchase journal and return inwards journal. The purchase journal is used to record credit purchases and its source document is the purchase invoice. It debits the purchases account and credits the trade payables account. The return inwards journal is used to record credit returns and its source documents are debit notes received and credit notes issued. It debits the return inwards account and credits the trade receivables account for returned goods.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Purchase Journal is a book of prime entry which is used to record credit purchases transactions.

    Purchase invoice is a source document for purchase journal.

    Details Source Book of prime Debit Credit


    documents entry

    (i) Bought goods for Purchase Purchase Purchases Trade


    $5000 on credit. invoice journal $5000 Payables
    $5000
    (ii) Bought goods for Purchase Purchase Purchases S.Jaison $6000
    $6000 on credit invoice journal $6000
    from s.jaison.

    Return inwards journal: is a book of prime entry which is used to record credit return inwards
    transactions. Credit note issued and debit note receive are the source documents for return inwards
    journal.

    Details Source Book of prime Debit Credit


    documents entry

    (i) Goods returned to Debit note Return Return Trade


    us by a credit receive/credit inwards inwards$100. Receivables
    customer of $100. note issued journal $100
    (ii) Goods returned to Debit note Return Purchases Smith $150
    us by Smith of receive/credit inwards $6000
    $150. note issued journal

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