Making Account .com
first :company purchased many items from many companies, but not all items can be purchased with cash Some items are credit
cash transaction ends immediately after the payment is made but the credit transaction It is not like that so the credit transaction documents should be kept safe till the payment
second The credit transaction recorded in the Subsidery book is repaid based on the FIFP (first in first paid) method
So asset Purchase transactions will not be recorded in this because the amount to be paid for the asset will be higher and Only short-term credit transactions are recorded .
third :agreement-based transactions are also credit transactions (bills payable,bills receivable)
Sometimes the purchased goods are substandard and damaged Those goods are return to supplier .Details of the goods to be returned are recorded in the purchase return book
Do not record the purchase return in the purchase account
for example, Purchased $100, Prchased return $15
The purchase return will be deducted from the purchase A/C in the trading account
investment $25000
purchased 200 Wheel $ 5000 (on credit) from tkl Wheel manufacturer company
purchased 400 Lighting (200 small Lighting $1000 and 200 medium Lighting $3000) $ 4000 (on credit) from ic Lighting manufacturer company
purchased Nut bolt and Other iron parts $ 2500 (on credit) from iron manufacturer company
purchased other rawmetirial $1800 on cash and The damaged material were returned $200
The 12 damaged Wheel were returned to tkl Wheel manufacturer company
damaged 10 small Lighting and 16 medium Lighting were returned to ic Lighting manufacturer company
cash paid to iron manufacture company for purchase the material $500
sales $18000 on cash
date | particular | Inward Invoice No | LF | quntiy | Amount |
---|---|---|---|---|---|
0/0/0 | Purchased From Tkl Wheel Manufacturer Company per Wheel price is $25 (5000/200=25) | 000/00|00 | 04 | 200 | 5000 |
Total Credit Purchases | 5000 | ||||
discount allowed | - | - | - | ||
purchased Return (12*25=300) | 000/00|00 | 07 | - | 300 | |
repaid to tkl Wheel manufacturer company | - | - | - | - | |
tkl Wheel manufacturer company total payment(creditors) | 4700 |
date | particular | Inward Invoice No | LF | quntiy | Amount |
---|---|---|---|---|---|
0/0/0 | purchased From ic Lighting manufacturer company | 000/00|00 | 05 | ||
200 Small Lighting $1000 per Lighting price $5 (1000/200=5) | - | - | 200 | 1000 | |
200 Medium Lighting $3000 per Lighting price $15(3000/200=15) | - | - | 200 | 3000 | |
Total Credit Purchases | 4000 | ||||
discount allowed | - | - | - | - | |
purchased Return | 000/00|00 | 07 | - | - | |
10 Small Lighting $5 (10*5=50) | - | 10 | 50 | ||
16 Medium Lighting $15 (16*15=240) | - | - | 16 | 240 | |
repaid to ic Lighting manufacturer company | - | - | - | - | |
ic Lighting manufacturer company total payment(creditors) | 3710 |
date | particular | Inward Invoice No | LF | quntiy | Amount |
---|---|---|---|---|---|
0/0/0 | Purchased Nut Bolt And Other Iron Parts From Iron Manufacturer Company | 000/00|00 | 06 | 2500 | |
total credit purchases | 2500 | ||||
discount allowed | - | - | - | - | |
purchased Return | - | - | - | - | |
repaid to Iron Manufacturer Company | - | - | 500 | ||
Iron Manufacturer Company total payment(creditors) | 2000 |
particular | amount |
---|---|
Tkl Wheel Manufacturer Company | 4700 |
Ic Lighting Manufacturer Company A/C | 3710 |
Iron Manufacturer Company A/C | 2000 |
total creditors | 10410 |
particular | amount |
---|---|
Tkl Wheel Manufacturer Company | 5000 |
Ic Lighting Manufacturer Company A/C | 4000 |
Iron Manufacturer Company A/C | 2500 |
total credit purchases | 11500 |
particular | amount |
---|---|
Tkl Wheel Manufacturer Company | 300 |
Ic Lighting Manufacturer Company A/C | 290 |
total credit purchased return | 590 |
The Purchased and purchase return Book is prepared to find the credit transaction
total purchase =cash purchase + credit purchase (1800 + 11500+13300)
total purchased Return=cash purchased Return +credit purchased Return (590 + 200+790)
Date | Particular | debit | credit | |
---|---|---|---|---|
- | ||||
cash | 40900 | - | ||
capital | - | 25000 | ||
purchase | 13300 | - | ||
purchase return | - | 790 | ||
creditors | - | 10410 | ||
sales | - | 18000 | ||
- | ||||
54200 | 54200 |
Debit | credit | ||||
particular | Amount | Amount | particular | Amount | |
---|---|---|---|---|---|
purchase | 13300 | sales | 18000 | ||
(-)purchase return | 790 | 12510 | 18000 | ||
G/P | 5490 | ||||
18000 | 18000 | ||||
N/P | 5490 | G/P | 5490 |
liability | Amount | asset | Amount |
---|---|---|---|
capital | 25000 | by cash | 40900 |
N/P | 5490 | ||
creditors | 10410 | ||
40900 | 40900 |
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