Finance Tutorialpurchase journal | Finance Tutorial http://finance-tutorial.info Get free finance tutorial here! Mon, 12 Mar 2012 00:57:40 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 The slip system and batch posting- Part 1 http://finance-tutorial.info/the-slip-system-and-batch-posting-part-1/ http://finance-tutorial.info/the-slip-system-and-batch-posting-part-1/#comments Wed, 23 Jun 2010 09:21:26 +0000 azka http://finance-tutorial.info/?p=110 It has been stated in post before that the purpose of sales and purchases journals is to provide a medium from which the accounts of customers and suppliers can be posted. And also to provide totals for the various sales, purchases and materials control accounts. If these are the sole reasons for keeping the journals, then consideration should be given to the possibility of eliminating the writing up of these books by the introduction of the slip system or “ file posting”, as it is sometimes called. Taking the example of a day’s sales invoices, a copy of each invoice will be sent to the accounts department, and a total of the invoices will be made on an adding/ listing machine. Departmental totals can be obtained on a special analysis machine. The total of the invoices will be entered un the sales accounts, and the personal accounts of the customers in the sales ledger will then be entered direct from the copies of the invoices.

An additional advantage of the slip system us that invoices can be sorted un the required order for entering in the ledger. It must be emphasized that where use us made of simplified methods a strict control must be kept since the normal book- keeping checking methods can not be used.

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]]> http://finance-tutorial.info/the-slip-system-and-batch-posting-part-1/feed/ 6 The Purchase Journal – The objects of the purchase journal http://finance-tutorial.info/the-purchase-journal-the-objects-of-the-purchase-journal/ http://finance-tutorial.info/the-purchase-journal-the-objects-of-the-purchase-journal/#comments Tue, 27 Apr 2010 13:12:20 +0000 azka http://finance-tutorial.info/?p=56 So long as a business pays on delivery for everything it buys the purchases account or accounts could be written up from the entries in the cash paid book or the cash paid side of a single cash book. Where purchases are obtained on credit it is necessary to operate a separate book of prime entry recording such transactions. This subsidiary book is variously called a purchase journal or purchase day book.

The purpose of the purchase journal is to provide a medium from which entries can be made :
a. To the creditor’s accounts recording the indebtedness of the business to its suppliers
b. To the purchases or material account, recording the cost of the material which has been obtained but not paid for immediately.

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