Accounting·Basic accounting systems · NSSCO 2.5
Credit purchases & the Creditors Journal
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When a business buys its goods on credit, it takes them now and pays the supplier later. We'll meet the source document — the supplier's invoice — learn the careful checks we do against the purchase order and delivery note, look inside an invoice (including carriage inwards), then prepare a Creditors Journal from several invoices and post it to the Creditors Ledger and the General Ledger.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.5):
- Explain the importance of checking invoices against delivery notes and purchase orders
- Explain the contents of and complete an invoice including carriage inwards
- Explain why the Creditors Journal is used
- Prepare the Creditors Journal from details extracted from invoices
- Post from the Creditors Journal to the Creditors Ledger and General Ledger
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