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A purchase journal is an accounting journal and it is also a prime entry book/daybook/main entry book which is used in an accounting system to keep track of the orders of items placed using accounts payable .
A purchase returns journal (also known as returns outwards journal/purchase debits daybook) is a prime entry book or a daybook which is used to record purchase returns.In other words, it is the journal which is used to record the goods which are returned to the suppliers.
Special journals (in the field of accounting) are specialized lists of financial transaction records which accountants call journal entries.In contrast to a general journal, each special journal records transactions of a specific type, such as sales or purchases.
Transactions include purchases, sales, receipts and payments by an individual person, organization or corporation. There are several standard methods of bookkeeping, including the single-entry and double-entry bookkeeping systems. While these may be viewed as "real" bookkeeping, any process for recording financial transactions is a bookkeeping ...
Purchase price allocation (PPA) is an application of goodwill accounting whereby one company (the acquirer), when purchasing a second company (the target), allocates the purchase price into various assets and liabilities acquired from the transaction.
An example of a purchase order request from a travel agent. A purchase order, often abbreviated to PO, is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services required. [1] It is used to control the purchasing of products and services from external suppliers. [2]
Historically, the purchase ledger was maintained in book form, hence the term ledger, but in modern practice it is much more likely to be held on computer using accountancy software or a spreadsheet. The concept of double-entry bookkeeping is that debits balance the credits at all times.
Debits and credits occur simultaneously in every financial transaction in double-entry bookkeeping. In the accounting equation , Assets = Liabilities + Equity , so, if an asset account increases (a debit (left)), then either another asset account must decrease (a credit (right)), or a liability or equity account must increase (a credit (right)).