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Chapter-4. Recording of transaction-II Accounts class 11 in english Medium CBSE Notes
CBSE Class 11 Accounts Notes in English Medium based on latest NCERT syllabus, covering definitions, diagrams, formulas, and exam-oriented explanations.
4. Recording of transaction-II
Purchase and Purchase Return (Journal) Book
PURCHASE BOOK –
- It is used to record all credit purchase of goods of the company.
- Cash purchases of goods and non goods items like, fixed assets are not recorded in cash book.
FEATURES OF PURCHASE BOOK –
- Cash purchases of goods are not recorded in purchase book.
- Entries in purchase book are made on the basis of invoices.
- Transactions are recorded in purchase book in chronological order.
- Only credit purchases of goods are recorded in purchase book.
UTILITIES OF PURCHASE BOOK –
- It makes easy to check price charged and other information.
- It provide periodical total of credit purchases of goods.
- Ledger posting becomes easier.
- It helps to reduce volume of work.
DIFFERENCE BETWEEN PURCHASE BOOK AND PURCHASE ACCOUNT –
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PURCHASE ACCOUNT |
PURCHASE BOOK |
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1. It is a part of ledger. 2. It has debit and credit columns.
3. It records both cash and credit purchases of goods. 4. Balance in purchase account is transferred to trading account.
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1. It is a part journal. 2. Like ledge, it does not have debut and credit columns. 3. It only records credit purchases of goods. 4. Total of purchase book is transferred to purchase account. |
See other sub-topics of this chapter:
2. Purchase and Purchase Return (Journal) Book