Flashcards in Chapter 6: Accounting for purchases and purchases returns Deck (6)
What does the Accounting System stages of recording & presenting financial transactions include?
1. Financial Documents
2. Books of Prime Entry
3. Double-Entry book-keeping
4. Trial Balance
Financial Documents relating to credit purchases are?
-Credit notes received.
What is the purchases day book?
Purchases day book is the book of prime entry for credit purchases.
It is prepared from purchases invoices received from suppliers.
What is the purchases returns day book?
Purchases returns day book is the book of prime entry for purchases returns.
It is prepared from Credit Notes received from suppliers.
What are analysed purchases & purchases returns day books used for?
When a business wishes to analyse its purchases between different categories of expenditure.