Purchase Book | Types | Examples | Subsidiary Books

Purchase Book Feature Image

What is Purchase Book?

It 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:

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:

Purchase Book format - Purchase Book | Types | Examples | Subsidiary Books
Simple Purchase Book format

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.

Example:

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

01/02/2018 Purchased from M/s Ram & Sons. Punjab

100 Packets of the ball pens @ Rs 20 per Packets

60 Packets of the Ink pens @ Rs 40 per Packets

  CGST and SGST @6% each applicable

04/02/2018 Purchased from M/s sham & Sons. Delhi

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

  IGST @6% each applicable

07/02/2018 Purchased from M/s Raghunath store. UP

70 Boxes of the pencils @ Rs 15 per Box

40 Boxes of the erasers @ Rs 20 per Box

  Freight paid Rs. 100

  CGST and SGST @6% each applicable

Solution:- 

Purchase Book 

Purchase Book Example min 1 - Purchase Book | Types | Examples | Subsidiary Books
Purchase Book – Example

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:

Columnar Purchase Book format min - Purchase Book | Types | Examples | Subsidiary Books
Columnar Purchase Book format

Example:

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

01/02/2018 Purchased from M/s Ram & Sons. Punjab

100 Packets of the ball pens @ Rs 20 per Packets

60 Packets of the Ink pens @ Rs 40 per Packets

  CGST and SGST @6% each applicable

04/02/2018 Purchased from M/s sham & Sons. Delhi

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

  IGST @6% each applicable

07/02/2018 Purchased from M/s Raghunath store. UP

70 Boxes of the pencils @ Rs 15 per Box

40 Boxes of the erasers @ Rs 20 per Box

  Freight paid Rs. 100

  CGST and SGST @6% each 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 

Columnar Purchase Book Example min - Purchase Book | Types | Examples | Subsidiary Books
Columnar Purchase Book – Example

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

Thanks

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