Purchase Return Book

The Purchase Book is a specialized accounting book used to record all credit purchases of goods or materials. It excludes cash purchases, which are recorded in the cash book.

Key Features:

• Records Credit Purchases: Only purchases made on credit are recorded in the purchase book.
• Excludes Cash Purchases: Cash purchases are not included; they are recorded in the cash book.
• No Posting to Ledger Immediately: Each credit purchase is posted to the individual supplier accounts in the Purchase Ledger later.

Purpose:

The purchase book helps businesses track credit purchases of goods, providing an organized record of all items bought on credit.

Format

Example:

If a business purchases goods worth Rs. 15,000 from a supplier on credit, it will be recorded in the purchase book as:

Conclusion:

The Purchase Book helps businesses organize and track all credit purchases made from suppliers, making it easier to manage liabilities and supplier relationships.