–Pushpender Kumar Academic Content Writer
Purchase Book is a book in which all credit purchases of goods are recorded of business.
The Purchase Book does not record cash purchases of goods and assets. Cash purchases of goods and assets are recorded in the Cash Book.
Whereas credit purchases of assets are recorded in a journal proper.
Credit purchases of goods are recorded in the Purchase Book based on source documents such as invoices, bills, etc.
The net amount of credit purchases is recorded in the Purchase Book and does not record trade discounts and other information mentioned in the invoice, bill, etc.
Purchase Book has the following columns:
Date
Invoice No.
Name of supplier
Ledger Folio (L.F.)
Amount