Purchase Book | Types | Examples | Subsidiary Books

Another topic of the subsidiary book is the Purchase Book. I will explain to you the meaning, its types and in last we will understand the topic with the help of the particle examples of it according to its type.

What is Purchase Book?

Purchase Book in accounting is that book in which we have to record all credit business transactions related to the purchase of goods only. It is an original entry book like a Cash Book. Cash purchases of goods are not recorded in it because all these transactions are recorded in the Cash Book. This book is also known as purchase register, purchase day book, purchase journal, and purchase invoice book.

In other words, The credit business transaction related to the purchase of goods is recorded in this book.

Type of Purchase Book in accounting:

It has two types, which are shown below:

1. Simple
2. Columnar

1. Simple:

This format is used by the seller who has Unlimited types of products in which he is trading. The format of it shown in the following image:

Explanation of column:

1. Date:

In this column, we have to write the date of the event or business transaction.

2. Particulars:

In this column, we have to record the all details about the event or business transaction. Like the name of supplier and Name & quantity of material, etc.

3. Invoice No.:

Bill no. or Invoice no. related to the purchase of goods enter in this column to track it in future.

4. L. F.:-

L.F.  means Ledger folio. The purchases book is original entry book so we will post these all transaction in the ledger. So, the page no. of the ledger book on which this transaction is recorded will be entered in this column.

5. Details: -

Item wise total of the amount will be entered in this column. Trade Discount also is shown in this column by deducting it from the total amount of items.

6. Amount: -

The Customer wise Net amount is shown in this column. Sale value less Trade discount.

Example:

01/02/2021 Purchased from M/s Ram & Sons. Punjab with invoice no. 11525

100 Packets of the ball pens @ Rs 20 per Packets
60 Packets of the Ink pens @ Rs 40 per Packets
IGST @12% applicable

04/02/2021 Purchased from M/s sham & Sons. Delhi with invoice no. 6298

50 Ream of the A4 size paper reams @ Rs 150 per Ream
200 Pcs of the Small Note Book  @ Rs 18 per pcs
100 Pcs of the Lager Note Book  @ Rs 28 per pcs
CGST and SGST @6% each applicable

07/02/2021 Purchased from M/s Raghunath store. UP with invoice no. 4597

70 Boxes of the pencils @ Rs 15 per Box
40 Boxes of the erasers @ Rs 20 per Box
Freight paid Rs. 100
IGST @12% applicable

Solution:- 

Purchase Book 

2. Columnar:

This format is used by the seller who has the limited types of products in which he is trading because in this format accountant will show all the products of the business in a separate column to find out the sale of individual products and closing stock or gross margin on each type of products. The format of it shown in the following image:

Example of Columnar Purchase Book:

From the following particulars, prepare the Purchases Book of a Stationary merchant M/s Aman and Bro Co. Delhi:

01/02/2021 Purchased from M/s Ram & Sons. Punjab with invoice no. 11525

100 Packets of the ball pens @ Rs 20 per Packets
60 Packets of the Ink pens @ Rs 40 per Packets
IGST @12%applicable

04/02/2021 Purchased from M/s sham & Sons. Delhi with invoice no. 6298

50 Ream of the A4 size paper reams @ Rs 150 per Ream
200 Pcs of the Small Note Book  @ Rs 18 per pcs
100 Pcs of the Lager Note Book  @ Rs 28 per pcs
CGST and SGST @6% each applicable

07/02/2021 Purchased from M/s Raghunath store. UP with invoice no. 4597

70 Boxes of the pencils @ Rs 15 per Box
40 Boxes of the erasers @ Rs 20 per Box
Freight paid Rs. 100
IGST @12%applicable

Solution: -

We had solved the same question with a columnar method. The columnar method is used where are the recurring purchase of the single product in the day or week or month to get an easy total of it.

Purchase Book 

If you have any questions about this topic, please ask them in the comment section below.

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