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Chapter 9
Accounting Information Systems
Account:
Joe Blog
Date
PR
DR
CR
Balance
2016
Jan 5
SJ1
1,235
1,235 DR
Jan 10
CR3
600
635 DR
Account:
Furniture Retailers
Date
PR
DR
CR
Balance
2016
Jan 16
SJ1
956
956 DR
figure 9.11
The Purchases Journal
The purchases journal records all purchases on account. Several columns are provided to account
for common items that the company purchases on account (inventory and office supplies in our
example). If anything else is purchased, it is recorded in the Other column.
Inventory
(DR)
Office
Supplies
(DR)
Other
(DR)
Accounts
Payable
(CR)
figure 9.12
When a purchase is made, as shown on January 3 in Figure 9.13, the supplier subledger account
must be updated immediately. Notice that the purchases journal has a column for terms. Some
suppliers will provide payment terms. Since terms differ from supplier to supplier, the terms column
is provided to keep track of them. Updating the subledger account follows these steps.
1
Transfer the date from the purchases journal to the date column in the subledger account.
2
Make a note of the journal and page number in the PR column of the subledger.
3
Transfer the amount of the accounts payable column to the credit column in the subledger.
4
Indicate the posting is complete by entering a check mark in the PR column in the purchases
journal.
Purchases Journal
Page 6
Date
Account
Invoice # Terms PR
Inventory
(DR)
Office
Supplies
(DR)
Other
(DR)
Accounts
Payable
(CR)
Jan 3 Antonio's Electric 2089
3/15, n 30
4,200
4,200
Account:
Antonio's Electric
Date
PR
DR
CR
Balance
2016
Jan 3
PJ6
4,200 4,200 CR
figure 9.13
1
3
2
4
