The Difference Between Purchase Book and Purchase Account is that these terms are different from each other on the basis of the nature of business transactions i.e. Purchase book includes only Credit Business Transactions but Purchase Account includes both types of Business Transactions. So, to know the more Difference Between the Purchase Book and the Purchase Account, First of all, we have to clear the actual meaning or uses of both terms. These are explained below:
What is the Purchase Book: –
The Purchase Book means that book in which we have the record all credit transactions which are related to the purchase of goods. It is the primary book-like journal daybook. The main purpose to prepare the Purchase book is to maintain the record of credit business transactions which are related to the purchase of goods and sundry Creditors with the details of material purchased from them and for paying the outstanding amount in the future. The Format of Purchase book is shown as below : –
In the books of _________
Purchase Books
|
Date |
Particulars |
Invoice No. |
L. F. |
Details |
Amount |
To know the details about the Purchase Book, Please check out the following link:
Purchase Book | Types | Examples | Subsidiary Books
What is Purchase Account: –
The Purchase Account means that ledger account in which we have the record all the business transactions which are related to the purchase of goods eighter cash or credit. The main purpose to prepare the Purchase Account is to main the record of the total purchase of stock in the financial year. The Format of Purchase Account is shown as below: –
In the books of _________
Purchase A/c
|
Date |
Particulars |
J.F. |
Amount |
Date |
Particulars |
J.F. |
Amount |
The purchase account is similar to any type of ledger account and treated as same. So, to know the details about the Purchase Book, Please check out the following link:
What is Ledger in accounting – explain its Types
Chart of Difference Between Purchase Book and Purchase Account: –
Basis of Difference |
Purchase Book |
Purchase Account |
|
Meaning |
The Purchase Book means that book in which we have the record all credit transactions which are related to the purchase of goods. | The Purchase Account means that ledger account in which we have the record all the business transactions which are related to the purchase of goods eighter cash or credit. |
|
Types |
It is Primary type of Book of accounts. | It is Secondary type of Book of accounts Because it is based on journal daybook. |
|
Main Purposes |
It is maintained to record all credit business transactions which are related to the Purchase of goods. | It is maintained to the record of the total purchase of goods(stock) in the financial year |
|
Business Transaction |
In it, only credit business transactions are recorded. | In it, both credit and cash business transactions are recorded. |
|
Treatment in the Financial Statements |
The balance of it is not transferred in the Financial Statement of business. | The balance of it is transferred in the Financial Statement of business. It is transferred to Trading Account. |
|
Credit Column |
It does not have a Credit Column because it is a special-purpose book. | It does have both column i.e Debit and Credit. |
|
Dependency on other books |
It is not dependent on any other primary book because the transaction is directly recorded in it from the purchase invoice. | It is dependent on journal daybook. All the transaction which are related to the purchase of goods is posted in this ledger from the journal. |
Download the chart:
If you want to download the chart please download the following image and PDF file
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The conclusion of Difference: –
The conclusion of the Difference Between Purchase Book and Purchase Account is that these both terms are related to the sperate book Because purchase book is the primary book and Purchase account is the part of ledger accounts.
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