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What is Purchase Book?

What is Purchase Book?

Purchase Book is a subsidiary book which records the transactions of credit purchase of goods for trading purpose. Cash purchases are recorded in the Cash Book.

It is also known as purchase register or purchase day book. The Account Payable Register is the same as Purchase register.

In simple terms, Purchase book means a register in which credit purchase of goods/stock in which an organization deals are recorded.

As per the ruling of double entry system, entry for each purchase reflects two accounts. The first one is the purchase account and the other account will be creditor’s account.

Generally, this book consists of five columns. Date, details of Creditor, Invoice Number, Ledger Folio number and the last one is Amount.

You can download our ready to use Purchase Register or Accounts Payable Register from the link below:

Purchase Register / Accounts Payable Register

If you have any queries or questions, share them in comments below and I will be more than happy to help you.

Filed Under: Accounting Glossary

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About Fahim Lashkaria

I love working in Excel and I share functional excel templates at ExcelDataPro. Read more about me here or interact with me on twitter.

Comments

  1. Mahim says

    May 23, 2019 at 12:02 am

    after paying the credit purchase bill, the amount is go to cash book, is it r8?

    Reply
    • Fahim Lashkaria says

      May 23, 2019 at 11:56 am

      An outstanding bill or purchase on credit is your accounts payable. Hence when you make payment of that particular bill through cash, it will be reported in cash book. but if it is paid through bank/check it will not be entered in the cash book.

      Reply
      • stellys says

        September 29, 2020 at 6:37 pm

        I have study some materials and gets to know that in cash book there is column for showing the bank and cash for both credit and debit sides, and explained that once the good are purchased on credited, that transaction is not recorded but once it paid through the check, that check appeared to the bank in debit side in Cash book.

        Reply
        • Fahim Lashkaria says

          September 30, 2020 at 5:20 pm

          According to the best of my knowledge, bank transactions relating to the cash book will only be recorded in the cash book. For example, withdrawals and payments. Purchase on credit is recorded into accounts payable and whenever it is paid in cash, the transaction will be recorded in the cash book. But if paid through the bank then it will be recorded in the bank book.

          Reply
  2. Accounts Definition says

    September 16, 2020 at 8:40 am

    A helpful article on Purchases Book, we also have tried to present Accounting notes in easy and in an understandable manner especially for students who were beginners in Accounting. We feel grateful to help them.

    Reply

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