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Purchase Book is a subsidiary book which records the transactions of credit purchase of goods for trading purpose. Cash purchases are recorded in the Cash Book.

Purchase Book is that book in which we have record all the business credit 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.

The Functions of Purchase Book are:

  • It gives at a glance, the total amount of credit purchases for a period.
  • It keeps detailed record of credit purchases.
  • It saves time and labour, as periodical totals can be posted to the purchases account in place of posting individual items.
  • It keeps the purchases account brief and tidy, as postings are made in condensed form.
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