Question

Purchase book records signify :

• A. All purchases made by the firm
• B. All purchases of fixed asset used by the firm
• C. Credit purchases of goods dealt in by the firm
• D. Cash purchases of goods dealt in by the firm

Answer 1

The correct option is C Credit purchases of goods dealt in by the firm

Purchase Day book or a Purchase Register is the book of original entry in which all the transactions relating to only credit purchase are recorded. Cash purchases do not find place in purchase day book as they are recorded in Cash book.