What is the difference between a purchases book and purchases account?

Asked by Topperlearning User | 11th Jul, 2016, 04:49: PM

Expert Answer:

Purchases Book

Purchases Account

 i. It is a part of journal

 i. It is a part of ledger

 ii. It does not have debit and credit column

 ii. It have a debit and credit column

 iii. Only credit purchases are recorded

 iii. Cash purchases as well as credit purchases are recorded

 iv. Total amount of purchases book is posted to purchases account periodically

 iv. Balance of the account is transferred to the trading account on debit side

 

Answered by  | 11th Jul, 2016, 06:49: PM