What is a Purchase Day Book?
A Purchase Day Book (also known as the Purchase Journal) is a subsidiary book used to record credit purchases of goods. It helps businesses maintain an organized and chronological record of all credit purchases made during a period. Understanding the Purchase Day Book format is essential for accurately recording transactions and maintaining efficient bookkeeping practices.
Note: Only credit purchases of goods (not cash purchases or assets) are recorded here.
Purchase Day Book Format
| Date | Invoice No. | Supplier Name | Details of Goods Purchased | L.F. (Ledger Folio) | Amount (₹) |
|---|
Explanation of Each Element
Let’s break down what each column in the format means:
1. Date
- Date goods were bought on credit
- Helps track purchases day-wise
2. Invoice Number
- A unique number on the supplier’s bill
- Used for reference and verification
3. Supplier Name
- Name of the supplier or vendor from which the goods were acquired
- Useful for supplier tracking and reconciliation
4. Details of Goods Purchased
- A brief description of the goods, quantity, rate, and any other relevant details
- Sometimes includes trade discounts or tax
5. L.F. (Ledger Folio)
- The page number of the ledger where this transaction is posted
- Makes it easy to trace entries in the ledger
6. Amount (₹)
- Total value of the goods purchased from the supplier (after discount, if any)
Example of Purchase Day Book with Explanation
Let’s say a company named Techno Traders made the following credit purchases in April:
| Date | Invoice No. | Supplier Name | Details of Goods Purchased | L.F. | Amount (₹) |
|---|---|---|---|---|---|
| 01/04/2025 | 1001 | ABC Electronics | 10 Laptops @ ₹40,000 each, 10% trade discount | 21 | 3,60,000 |
| 03/04/2025 | 1002 | XYZ Printers | 5 Printers @ ₹15,000 each | 22 | 75,000 |
| 05/04/2025 | 1003 | Smart Tech Co. | 20 Keyboards @ ₹1,200 each | 23 | 24,000 |
Explanation of the Example:
1. ABC Electronics
- Purchased 10 laptops @ ₹40,000 = ₹4,00,000
- Less 10% trade discount = ₹40,000
- Net Amount = ₹3,60,000
2. XYZ Printers
- 5 printers @ ₹15,000 = ₹75,000
- No discount, so amount is ₹75,000
3. Smart Tech Co.
- 20 keyboards @ ₹1,200 = ₹24,000
Each entry is later posted to the purchase ledger account using the ledger folio (L.F.) reference.
Why Use a Purchase Day Book?
- Helps businesses organize their credit purchases
- Avoids errors by maintaining a day-wise record
- Simplifies posting to ledger accounts
- Saves time compared to recording each entry directly in the journal
Conclusion
The Purchase Day Book is an essential accounting tool for businesses that regularly buy goods on credit. By using a structured format and understanding each element, you can keep your records clean, clear, and audit-ready.
Whether you’re a student or a business owner, mastering the purchase day book format will improve your financial accuracy and record-keeping.