FA 1 Section - Books of prime entry | Purchase day books, purchase return day books

6 important questions on FA 1 Section - Books of prime entry | Purchase day books, purchase return day books

What is a purchase order?

A document that the business produces when it wants to buy something from a supplier. It lists what is being bought and the price being paid.

  • What is a purchase invoice?
  • What do you always have to do with a purchase invoice?

A purchase invoice is an invoice received from the supplier you have bought goods or services from on credit.

Check it against all the purchase documents and then code it according to the coding policy used.

What happens with the purchase invoice after you have code it and it has been authorised?

It is entered in the PDB | Purchase Day Book (part of the book of prime entry)
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What is batch posting?

Bookkeepers wait till they have a certain number of documents or transactions and then process them together as a batch. Folders are then placed in the designated folder and posted all at once.

The purchase day book is totalled at the end of the week or month why?

To show;
  • Net value;
  • Sales tax;
  • Total amount of money owed to suppliers;

Where have credit notes received by a supplied have to be entered?

PRDB | Purchase Returns Day Book

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