Difference Between Purchase Book and Purchase Account

Difference Between Purchase Book and Purchase Account

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 Purchase Book and Purchase Account, First of all, we have to clear the actual meaning or uses of both terms. These are explained below: 

The Content covered in this article: –

  1. What is the Purchase Book?
  2. What is a Purchase Account?
  3. Chart of Differences
  4. Download links of format jpg and pdf
  5. Conclusion

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
(Rs.)

Date

Particulars

J.F.

Amount
(Rs.)

               
               
               
               
               

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 – Explained with Example

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

Chart of Difference Between Purchase Book and Purchase Account 268x300 - Difference Between Purchase Book and Purchase Account
Chart of Difference Between Purchase Book and Purchase Account
application pdf - Difference Between Purchase Book and Purchase Account
Chart of Difference between Purchase Book and Purchase Account

 

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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T.S. Grewals Double Entry Book Keeping - Difference Between Purchase Book and Purchase Account

T.S. Grewal’s Double Entry Book Keeping

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