Purchase Books

 

Purchase Book

Learn how credit purchases of goods are recorded systematically

📘 What is a Purchase Book?

A Purchase Book is a subsidiary book used to record credit purchases of goods made by a business.

It helps the business record all credit purchases of goods in a systematic and chronological manner.

📘 What is Recorded in the Purchase Book?

The Purchase Book records only the following type of transactions:

1. Credit purchase of goods
2. Goods purchased for resale
3. Purchases made in the ordinary course of business

⭐ Important Point

Purchase Book records only credit purchases of goods.

Cash purchases are recorded in the Cash Book, not in the Purchase Book.

📘 Examples

Example 1: Goods purchased on credit from Ram & Co. ₹20,000.

→ Recorded in the Purchase Book.

Example 2: Goods purchased for cash ₹10,000.

→ Recorded in the Cash Book, not in the Purchase Book.

📝 Quick Revision

• Purchase Book is a Subsidiary Book.
• It records credit purchases of goods.
• Cash purchases are not recorded in it.
• It helps record purchases systematically.