Purchases and Sales Book

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The Purchases Book is a special journal used only for recording credit purchases of goods. It does not record cash purchases or credit purchases of assets. The main idea is to keep similar transaction…

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Cash purchases are recorded in the Cash Book, not the Purchases Book. Purchases of assets such as furniture or machinery on credit are also not recorded in the Purchases Book; they go into the Journal…

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The Purchases Book includes these columns: Date, Invoice No., Voucher No., Particulars, L.F., Details, and Total. The details column is useful when one purchase includes more than one item.

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At the end of the period, the total of the Purchases Book is posted to the debit side of the Purchases Account. Each supplier’s individual account is credited with the amount of goods purchased from t…

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The total credit purchases are ₹62,607. This total comes from the three credit purchase entries: ₹26,920, ₹34,272, and ₹1,415.

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The suppliers were Malik Dealers, Delhi; Jawa Electric Store, Delhi; and Jai Hind Traders, Delhi. Each supplier’s account is credited with the amount of goods purchased from them.

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Trade discount is deducted before entering the net amount in the Purchases Book or Sales Book. Only the net amount after discount is recorded in the book.

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The Purchases Returns Book is used when goods purchased on credit are returned to the supplier. It records returns outward, and a Debit Note is sent to the supplier to inform that the supplier’s accou…