PURCHASES BOOK

Purchases book is meant for recording the purchase of goods on credit only. Cash purchases are not recorded in this book.

Entries in the purchases book are made from the invoices received from the suppliers. Posting is done in the supplier’s/ creditors account daily from the purchases book with their respective amounts. At the end of week/month, the total of the purchases book is debited to the purchases account in the ledger.

In ‘Particulars Column’ the names of the suppliers together with details of goods purchased are recorded. In ‘Details Column’ detail amounts of different items are recorded whereas in ‘Amount Column’ the net amount of various invoices is recorded.