How to write up a purchases day book with VAT
List each supplier invoice in the purchases day book with its net, VAT and total, then add up the columns and check them.
Task 1What goes in the purchases day book3 questions
A purchases day book is a list of the invoices a business receives from its suppliers for goods bought on credit.
Each invoice gets one line. The day book is only a list. It is not an account, and it is not part of the double entry.
- Goes in: an invoice from a supplier for goods bought on credit
- Stays out: goods paid for at once, which go in the cash book
- Stays out: a credit note from a supplier, which goes in the purchases returns day book
- Stays out: an invoice the business sends to its own customer, which goes in the sales day book
Task 2One line for each invoice2 questions
Task 3Adding up the day book4 questions