difference between purchase book and purchase accounting
difference between purchase book and purchase accounting
Purchases book
1. It records all the credit purchases of goods and services, which are brought for the purpose of further value addition and for resale. In simple words, Purchases Book records all the credit purchases of goods and services (in which the businessman deals).
2. This book is also known as Purchase Day Book, Invoice Book, and also Purchases Journal.
3. Purchases Book is a part of Journal.
4. There is no debit and credit side; as it is not an account.
(Note- From the Purchases Book, the entries are posted into two accounts- Purchases Account and Creditors' Account).
Purchases Account
1. It is a T-account, which records cash as well as credit purchases of the goods and services brought for the purpose of the resale.
2. The amount in the Purchases Account are posted from Purchases Book.
3. This book is a part of ledger.
(Note- Both the accounts do not record purchase of fixed assets)
Purchases book
1. It records all the credit purchases of goods and services, which are brought for the purpose of further value addition and for resale. In simple words, Purchases Book records all the credit purchases of goods and services (in which the businessman deals).
2. This book is also known as Purchase Day Book, Invoice Book, and also Purchases Journal.
3. Purchases Book is a part of Journal.
4. There is no debit and credit side; as it is not an account.
(Note- From the Purchases Book, the entries are posted into two accounts- Purchases Account and Creditors' Account).
Purchases Account
1. It is a T-account, which records cash as well as credit purchases of the goods and services brought for the purpose of the resale.
2. The amount in the Purchases Account are posted from Purchases Book.
3. This book is a part of ledger.
(Note- Both the accounts do not record purchase of fixed assets)
