DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : R. ROHINI
Designation : Lecturer
Branch : D.C.C.P
Institute : S.G.M. Govt Polytechnic,
Abdullapurmet
Year/Semester : I Year
Subject : ACCOUNTANCY-I
Subject Code : CCP-102
Topic : SUBSIDIARY BOOKS
Duration : 50 Mts
Sub Topic : EXERCISE ON PURCHASES BOOK
Teaching Aids : PPT, Animations
CCP102.39 1
Objectives

After completion of this class, you would be able

to know:
 Preparation of Purchases Book

 Postings into individual Ledgers from

purchase book

CCP102.39 2
Recap

 Preparation of Purchases book

 Preparation of Purchases account
 Postings into Ledger Accounts

CCP102.39 3
Purchases book
PROCEDURE

 Record all credit purchases in which the dealer

deals ( things purchased with the intention of
selling)
 Total the Purchases Book
 Open Purchases Account
 Open individual ledger accounts of creditors

CCP102.39 4
Record the following transactions in the
Purchases Book

2006 Jan Rs.

2 Goods purchased from Pratap 15,000
5 Bought goods from Sunil with 20,000
trade discount of 5%
12 Uday sold us goods 10,000
17 Bought goods from Pratap 12,000
(Trade discount 10%)
23 Bought goods from Pramod 8,000
28 Sunil sold goods to us 10,000

CCP102.39 5
Working Notes:

2004
Jan 5 (Trade Discount of 5%) :
20,000 x 5/100 = 1,000
20,000 – 1000 = 19,000

Jan 17 (Trade discount of 10%) :

12,000 x 10/100 = 1,200
12,000 – 1,200 =10,800

CCP102.39 6
 Purchases Book
Date Name of the Inward L.F Amount
Supplier Invoice No. Rs.
2006
Jan 2 Pratap 15,000
5 Sunil 19,000
Uday 10,000
12 Pratap 10,800
17 Pramod 8,000
23 Sunil 10,000
28 _______
Total 72,800
31 ---------
CCP102.39 7
 Ledger Postings

Purchases Account
Dr Cr

Date Particulars J Amt Date Particulars J Amt

F Rs. F Rs
2006
Jan 31 To Sundry 72,800
Creditors

CCP102.39 8
 Pratap’s Account
Dr Cr

Date Particulars J Amt Date Particulars J Amt

F Rs F Rs
2006
Jan 2 By Purchases 15,000
a/c

17 By Purchases 10,800
a/c

CCP102.39 9
 Sunil’s Account
Dr Cr

Date Particulars J Amt Date Particulars J Amt

F Rs F Rs
2006
Jan 5 By purchases 19,000

a/c
10,000
28 By Purchases
a/c

CCP102.39 10
 Uday’s Account
Dr Cr

Date Particulars J Amt Date Particulars J Amt

F Rs F Rs

2006
Jan 12 By Purchases 10,000
a/c

CCP102.39 11
 Pramod’s Account
Dr Cr

Date Particulars J Amt Date Particulars J Amt

F Rs F Rs
2006
Jan 23 By purchases 8,000
a/c

CCP102.39 12
Summary

 Preparation of Purchase book

 Postings into Ledger Accounts

CCP102.39 13
Quiz

State whether the following statements are true or False

3. In purchases book, both cash purchasers and credit

purchasers are shown
False
4. Purchase returns are also shown in purchases book
False

CCP102.39 14
1. Trade discount is shown in purchases book
False
2. Purchases book is balanced
False (It is always totaled )
4. Purchases a/c records both cash and credit
purchases
True

CCP102.39 15
Frequently asked questions

1. Write a short notes on purchases book

2. Write a short notes on purchases A/c

CCP102.39 16
Assignment
Record the following transactions in the Purchases
Book
2002May Rs.
1 Goods purchased from Teja 25,000
7 Bought goods from Ramu with 30,000
trade discount of 15%
12 Shyam sold us goods 10,000
17 Bought goods from Pratap 15,000
(Trade discount 10%)
25 Bought goods from Krishna 8,000
29 Sunil sold goods to us 10,000
CCP102.39 17
THANK YOU

CCP102.39 18