Figure 21.

1 : Purchases Cycle

Received
Purchase
Requisition from
 Purchase
Requisition

Approved
Clerk prepares a
Suppliers
pre-numbered
Quotations
Purchases Order
and obtains

Purchase
Requisition
PO
4
PO
PO 3
2 1

Purchase
order
(PO)

To Supplier To Store

To Accounting
Department

Figure 21.4 : Purchases Department

From
Received goods and
Purchas
delivery note from
es
 Approved
Purchase Order Delivery Note

Match
documents

App PO
3
Delivery Note

Storekeeper
checks the goods

Storekeeper prepares pre-

numbered receiving report
and obtains approval from

App. SO
3
Receiving Rpt.
2

Receiving
To Bin Card

N
To Accounts Department

Figure 21.5 : Stores-Receiving of Goods from Supplier

From From
Purchase Stores Received
Departm purchase
invoice
 2 2 Purchase
Purchase Order Delivery Note Invoice

Match
Docume

Clerk obtains
approval from
officer

Purchase
Order
Receiving
Rpt. 2
Purchase
Invoice

Figure 20.16 : Accounts Department

Purchase Invoice
 Bookkeeper Bookkeeper
records in records in
Purchase Purchase
Journal Ledger

Purchase Purchase
Journal Ledger

Figure 21.7 : Journalising and Posting the Sales

N
Receive
Remittance
Purchase Remittance
Invoice Advice

Match
docume

Prepare and
obtain approval of
Payment Voucher

Purchase
Invoice
Remittance
Adv.
Payment
Vouch. 3
Payment
Vouch. 2
1

Payment
Voucher

To Cashier

Figure 21.8 : Approving payment vouchers.

From
Accounts
Departm
ent

Purchase Invoice
 Remittance Adv.
Payment
Vouch. 3
Payment
Vouch. 2
1
Payment
Voucher

Prepare and
obtain

Purchase
Invoice
Remittance
Adv.
Payment
Vouch. 3
Payment
Vouch. 2
Payment
Vouch. 1
Cheque

To
Accounts Department N

To Supplier

Figure 21.9 : Cashier-Approving Cheques

Payment Voucher
 Bookkeeper Bookkeeper
records in records in
Cash Book Purchase

Purchas
Cash
e
Book
Ledger

Figure 21.10 : Accounts Department

Purchase
Cash Book
Journal

Bookkeeper Bookkeeper
totals up totals up the
the record recorded
entries entries
(monthly) (monthly)
 Bookkeeper Bookkeeper
posts the posts the
total monthly total monthly
sales to the receipt to the
Purchase Purchase

General
Ledger

Figure 21.11 : Accounts Department

General Purchase
Ledger Ledger

Agree the Purchase

Ledger Control A/c
balance with total
of Purchase Ledger
 Bala
nce
agre

No

Bookkeeper
prepares Creditors
Reconciliation

Creditors
Reconciliation
Statement

Figure 21.12 : Accounts Department

General Receive
Ledger Statement of
Account from

Statement of
Account
 Agree the Purchase
Ledger Control A/c
balance with

Balan
ce
agree

No

Bookkeeper
prepares Creditors
Reconciliation

Creditors
Reconciliation

Figure 21.13 : Accounts Departments

Received
Bank
Statement

Bank Statements Cash Book

Bookkeeper ticks
off the items that
are the same and
pick out the un-
presented
cheques and un-
 Bookkeeper prepares
Bank Reconciliation
Statement and obtains

Bank Reconciliation
Statement

Figure 21.14 : Accounts Department