What is a Purchase Book?

Purchase book is a type of special purpose subsidiary book which is used for recording only credit purchases of goods. Cash purchases of goods are recorded in the cash book.

Purchase book is also called a book of original entry. Purchase book does not record purchases of other assets. Those entries are recorded in the journal proper.

Entries for credit purchases of goods are recorded from the source documents directly to the purchase book. The source documents are the invoices or bills that are received from the supplier of goods.

The main purpose of preparing a purchase book is to know the amount of credit purchase taking place in a business at a particular point of time.

One important point to note about the purchase books is that, purchase book records credit purchase items that are integral to the core business operations or items that are procured with the purpose of reselling.

Purchase Book Format

Following is the format of purchase book

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