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.
Accounts payable is our short-term obligation to pay our suppliers for products and services which we have already purchased on credit.
Purchase Return Book is a subsidiary book of accounts which records the goods returned to our suppliers. It is also called return outward book. Usually, when poor quality, inaccurate quantity, untimely delivery goods are received, we return those goods to the suppliers. Purchases returns or returns outwards, are a normal part of the business. You need to […]
What is Accounts Payable? As per Wiki Accounts payable is money owed by a business to its suppliers shown as a liability on a company’s balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents. Or in very simple terms accounts payable ledger consists of the list […]