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:
| Date | Supplier Name | Invoice No. | Details of Goods Purchased | Amount (Rs.) |
|---|---|---|---|---|
| 02/10/2024 | ABC Supplies | 456 | 20 units of product B | 15,000 |
Conclusion:
The Purchase Book helps businesses organize and track all credit purchases made from suppliers, making it easier to manage liabilities and supplier relationships.