The purchases journal records all credit purchases of stock from suppliers who offer 60-day payment terms, with the business typically paying after 52 days. It details various transactions including dates, creditors, invoice numbers, stock control, GST, and creditors control, culminating in total amounts for each column. The creditors control column must equal the total of the stock control and GST columns, ensuring accurate accounting.

1. 6.4 THE PURCHASES
JOURNAL

2. © Michael Allison. Author’s permission required for external use.
6.4 THE PURCHASES JOURNAL
Purchases Journal
Records all credit purchases of stock
Business Suppliers
Buy from suppliers on
60 day terms
Business pays supplier
after 52 days

3. © Michael Allison. Author’s permission required for external use.
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
 Format of the Purchases Journal…
Date – the date of each
individual credit purchase
of stock
Creditor – the name of the
creditor from whom the
firm purchased stock
Invoice Number – issued by
each creditor (will NOT run
in sequential order)Stock Control – the cost
price of the stock
purchased
GST – 10% of the purchase
amount
Creditors Control – the total
amount the firm owes the
supplier
Totals – the total of each column
6.4 THE PURCHASES JOURNAL

4. © Michael Allison. Author’s permission required for external use.
 The Creditors Control column must equal the total of all other columns
Creditors
Control = Stock
Control
GST+
6820 = 6200 620+
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
Purchases Journal
Date Creditor Invoice
Number
Stock
Control
GST Creditors
Control
Jun 4 Eddie’s Electricals 1254 2400 240 2640
Jun 9 Wholesale Electrics WE101 1800 180 1980
Jun 15 Eddie’s Electricals 1268 900 90 990
Jun 21 Ace Lighting 8912 700 70 770
Jun 27 Wholesale Electrics WE184 400 40 440
Jun 30 Totals 6200 620 6820
6.4 THE PURCHASES JOURNAL

5. © Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
Ex6.4 (a) only X