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1.27 Examine the flowchart on page 22 of Instructions and Flowcharts book of the SUA case...

1.27

Examine the flowchart on page 22 of Instructions and Flowcharts book of the SUA case – Purchases on Account, what source documents are needed to prepare the journal entries to record the purchase?

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Answer #1

Purchase books are the subsidiary books prepared for recording all the credit purchases of goods that are meant for resale and the cash transactions are avoided since cash transactions are recorded in the cash book.

The vouching document that is used to record the credit purchases is the invoices that the firm receives from the seller or suppliers with the net amount. This book is maintained on the basis of invoice only and Accountant records quantity of products, rate and amount from invoice.

Each transaction is recorded by giving invoice no

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