Purchase day book and purchase return-ACCA FA1

Purchase day book and purchase return-ACCA FA1

In this post you will learn about purchase day book and purchase return day book, this is very important topic in exam point of view. Double entries is usually appear in exam from this chapter.

Purchase day book

The bills received by a company from its credit suppliers are listed in the purchase day book. A company must maintain record of all of its purchasing transactions in order to know how much money it owes to supplier at any one time.

The purchase day book includes all of the fundamental information about a purchasing, such as the transaction date, the retailer’s or supplier’s name, the price of the acquisition or purchase, the retailer’s or supplier’s invoice number, and the procurement invoice.

Q. Purchase day book consist of __?

  1. Cash
  2. receipts
  3. supplier invoice
  4. bank statement

The answer is 3 purchase day consist of supplier invoices.

Q. X purchase office equipment on credit worth 5000. Select the correct double entry for this purchase.

  1. Payable debit 5000, purchase credit 5000
  2. Purchase debit 5000, payable credit 5000
  3. Cash debit 5000, payable credit 5000
  4. Payable credit 5000, cash credit 5000.

Correct answer is 2 purchase will be debited and go in the statement of profit and lose and payable means liability and it will go in the statement of profit and loss.

Purchase return day book

The credit notes obtained when goods are returned to suppliers are recorded in the purchase returns day book. The purchase records and the purchase returns records are both referred to as ‘primary entry books.’ They are used to record transactions before they are registered elsewhere.


  1. You have received some defective goods and have returned them to the sender.
  2. Y recorded an invoice for the goods that y has received and received the delivery of items that is in extra of y’s requirements. Y have the supplier’s permission to return them.

Q. Y purchase clothes for 2000 on credit. When he wear those clothes he found that clothes are damaged and he returned that clothes to supplier. Record the double entry for both case one by one.

  1. for the first transaction clothes (purchase) debit 2000, payable credit 2000
  2. For second event, Debit payable with 2000, credit purchase return 2000 (liability is decreasing so we write debit and purchase is also so we did purchase debit in first case and now we will do inverse entry in second case )

Important points

  • Expense purchases, as opposed to inventory purchases, might be recorded in an expenses day book. Alternatively, you might keep track of all of your purchases in one spot.
  • In the day books, purchases and spending can be broken down into numerous categories. A computer spreadsheet, similar to the sales day books, might be used to create an evaluated purchase day book.
  • Supplier invoices will be assigned a specific reference figure based on the accounting system of the supplier. The receiving company will need to code these invoices before they can be entered into their accounting system.
  • The general ledger, control payables account, the sales tax control account, and the related purchases and expense accounts are all updated with the day book totals for purchases and purchase returns.
  • Capital expenditure accounts will be included in expense accounts, and will account for documenting business expenses such as admin costs. Individual supplier amounts are recorded in the payables ledger personal accounts (where these are maintained as memorandum accounts separate from the general ledger).

Must read previous notes

Receiving money and checking

Recording, summarizing and posting transaction

Double entries for sales, sales tax (FA1 pending topics)

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Naveen Rajput

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