Glossary · Also called Purchases journal
Purchases day book
A list of all the invoices a business receives for goods bought on credit.
What it means
A book of prime entry that records credit purchases from purchase invoices before ledger posting.
Example
Each supplier invoice for credit purchases is entered in the purchases day book.
Why it matters
It feeds the purchases account and the individual supplier accounts.
In practice
The purchases day book is a book of prime entry. It lists supplier invoices for goods bought on credit before they enter the double-entry system. Each invoice is recorded on its own line, and the supplier's account in the purchases ledger is credited. At intervals the total is posted as a debit to the purchases account in the nominal ledger.
For instance, three supplier invoices of RM120, RM480 and RM300 give a weekly total of RM900. Each credits the relevant supplier, and the RM900 is debited to purchases. Only credit purchases of goods for resale belong here. Buying a non-current asset such as a machine on credit does not go in this book.
Do not confuse it with the purchases ledger. The day book lists and totals incoming invoices in date order. The purchases ledger keeps a separate account for each supplier, showing the balance still owed.
If you are unsure which day book an invoice belongs in, one of our teachers can sort a mixed set of documents with you. Book a trial class.
Related terms
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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