Question

Purchase book records only ____purchase of goods ​

Answer 1

ANSWER :

Purchase book records only credit purchase of goods.

• Purchase Book is a day book, in which all credit purchase of goods are recorded. Here, goods means things which are bought by the business for resale.

MORE INFORMATION :

• Purchase book records all the credit purchase of goods which are bought for resale.

• Purchase book doesn't record the cash purchase of goods.

• Purchase of assets whatever it is cash or credit ,are not recorded in the Purchase book.

• Purchase book is also known as Purchase Journal or Purchase Day Book.

• The folios of the purchase book is serially numbered.

• Maintenance of purchase book reduces the volume of work of the record keeper since he doesn't need to pass journal entries for each credit purchase.

• As all credit purchases are recorded in one day book, i.e, Purchase book; it becomes easier to make posting in the ledger.