Question

Source documents for recording entries in the purchase book.

• A. Invoices received by the firm from seller
• B. Invoice received by the purchaser
• C. Invoices received by seller from firm
• D. All of the above

Answer 1

The correct option is A Invoices received by the firm from seller

Purchase books are the subsidiary books prepared for recording all the credit purchases of goods that are meant for resale and the cash transactions are avoided since cash transactions are recorded in the cash book.

The vouching document that is used to record the credit purchases is the invoices that the firm receives from the seller or suppliers with the net amount. This book is maintained on the basis of invoice only and Accountant records quantity of products, rate and amount from invoice.

Each transaction is recorded by giving invoice no.