Question

Distinguish between purchases book and purchases account.

Answer 1

The differences between purchases book and purchases account are

$\begin{array}{cc}\text{Purchases Book}& \text{Purchases Account}\\ \text{Purchases book is a part of a journal}& \text{Purchases account is a part of a ledger}.\\ \text{Purchases book does not have debit and credit columns}& \text{Purchases account has debit and credit}\\ \text{like ledger account.}& \text{columns.}\\ \text{In a purchase book, only credit purchase of goods dealt}& \text{In a purchases account, credit as well as cash}\\ \text{in or consumed for production are recorded.}& \text{purchase of goods dealt in or consumed for}\\ & \text{production are recorded}.\\ \text{Total of purchases book is posted to the purchases}& \text{Balance in the account is transferred to the}\\ \text{account}& \text{trading account}\end{array}$