Posting and Balancing :
Once transactions are properly recorded in purchases journal, they are posted into the ledger. The procedure for posting is stated as under.
Step 1 : Entries will be posted to the credit side of the respective creditors (supplier) account in the ledger by writing “By Purchases A/c” in the particulars column.
Step 2: Periodic total is posted to the debit of purchases account by writing “To sundries as per purchases book” in the particulars column.
Illustration : From the following transactions of Ram for July, 2003 prepare the Purchases Book and ledger accounts connected with this book.
2003
July 5 Purchased on credit from Kannan & Co.
50 Iron boxes @ Rs. 500
10 Grinders @ Rs. 3,000
6 Purchased for cash from Siva & Bros.
25 Fans @ Rs. 1,250
10 Purchased from Balan & Sons on credit
20 Grinders @ Rs. 2,500
10 Mixie @ Rs. 3,000
20 Purchased, on credit, one Computer from
Kumar for Rs. 35,000.
Date |
Particulars | Inward Invoice No. |
L.F. | Amount | |
Details Rs. |
Total |
||||
2003 July 5
10 |
Kaman & Co.
50 Iron boxes @ Rs. 500 10 Grinders @ Rs. 3,000 Goods purchased vide their bill No Dated |
25,000 |
55,000 |
||
Balan & Co.
20 Grinders @ Rs.2,500 10 Mixie @ Rs. 3,000 |
50,000 |
||||
Goods purchased vide their bill No…………… Dated ….. |
80,000 |
||||
Total |
1,35,000 |
Ledger Accounts
Dr. Purchases Account Cr.
Date |
Particulars | J.F. | Rs Amount
. |
Date | P ‘culars | J.F |
Amount |
2003 July 31 | To Sundries as per Purchases Book | 1,35,000 |
Dr. Kannan & Co. Account Cr.
Date |
Particulars | J.F. | A mo unt
Rs |
Date | Particulars | J.F |
Amou nt |
2003 July 5 | By Purchases
A/c |
55,0004 |
Dr. Balan & Co. Account Cr.
Date | Particulars | J.F. | A mo Rsunt | Date | Particulars | J.F | Amou nt Rs. |
2003 July 10 | By Purchases
A/c |
80,000 |
Note : July 6th transaction is a cash transaction and July 20th transaction is purchase of an asset, so both will not be recorded in the purchases book.