Advantaes to using the Purchases Journal McGrawHill Higher 使用购买杂志麦格劳山高等优点.pptVIP

CHAPTER SIXTEEN THE PURCHASES JOURNAL McGraw-Hill/Irwin Accounting Fundamentals, 7/e ? 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 1. Record purchases of merchandise on credit in a purchases journal. 2. Total, prove, and rule the purchases journal. 3. Post from the purchases journal. THE PURCHASES JOURNAL Chapter Outcomes: Recording Transactions in the Purchases Journal This special journal is used to record only purchases of merchandise on credit. Advantages to using the Purchases Journal All entries for purchases of merchandise on credit are grouped in one place. Important facts about each transaction are written on a single line Advantages to using the Purchases Journal (continued) There is no need to enter account titles or to write a long explanation for each transaction. The purchases journal allows for great division of labor -- one person can be put in charge of entering purchases. Posting From the Purchases Journal Posting is simplified using the purchases journal. Money columns are pencil-footed and the totals are posted to the appropriate accounts. Posting From the Purchases Journal (continued) The single posting to each account saves time and reduces the possibility of error. Accounting Terminology Posting reference P Purchases journal Chapter Summary The purchases journal is a special journal for recording purchases of merchandise on credit. The information about each transaction is taken from a purchase invoice and is entered on a single line of the purchases journal. Chapter Summary (continued) The journal entry for each purchase shows the date the invoice was received, the supplier’s name, the invoice number, the invoice date, the credit terms, and the amount of the purchase.