Question

The source document for purchase book is

Answer 1

Answer:

Purchase Book is a subsidiary book which records the transactions of credit purchase of goods for trading purpose.

The source documents for recording entries in the book are inward invoices or bills received by the firm from the supplies of the goods. Inward invoice is received by the buyer from the seller. On the receipt of invoice, the buyer stamps it with date of receipt.

A purchase invoice serves as the source document to record in the purchases day book. As explained in the last paragraph, the purchases invoice is the original of the sales invoice sent by the supplier to the customer.

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Answer 2

The source document for the purchase book is the purchase invoice.

• A purchase invoice is a kind of written document received by a person when he purchases something, which includes the price details, billing conditions, etc.
• It is a piece of evidence that shows a person has purchased something and also paid a particular amount for the goods.  
• When we receive an invoice, the total amount that we debited is documented which necessarily increases the amount of credit. After we paid the invoice, the amount is documented in the payable as a debit account and it decreases the amount of credit.

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