A subsidiary book in which trader records credit purchase transaction is known as ‘Purchase Book’. Purchase book is also known as Jamavahi or Credit Book as in this book the account of supplier of the goods is credited. When a businessman is purchasing only one type of goods, generally a simple purchase book is maintained. In purchase book, only the transactions relating to credit purchase of respective goods are recorded. Transactions of cash purchase and purchases of assets are not recorded in purchase book. The specimen of it is as follow:
Explanation :
(1) In the Date column, the date of transaction will be recorded. (2) In the Particular column, name of the supplier from whom goods are purchased on credit, will be recorded. (3) In the ‘Inward Invoice Number’ column, the invoice number or serial order number given by the trader will be recorded. (4) The page number of the ledger, on which the amount is credited in the account of the concerned supplier, will be recorded in the Ledger Folio (L.E) column. (5) Amount of net purchases arrived at, after deducting the amount of trade discount, will be recorded in the Amount column.
In the purchase book, according to the convenience and needs, the trader records the fixed time interval transactions and at the end of that period, total credit purchase will be decided after adding all the amounts. This time interval may be on weekly, fortnightly, monthly, quarterly, etc. basis. This type of the summary can be found out frequently at the end of fixed time interval.
Types of Purchase Book: Purchase book can be maintained in following two ways :
(i) Purchase book with columns according to types of goods : When a trader purchases goods of more than one type, instead of maintaining different purchase books for different type of goods, he will maintain, a columnar purchase book. Other particulars remaining constant, there will be additional columns for each different types of goods, in which the purchases of the respective goods will be recorded. e.g., Wheat, Rice, Bajra, etc. In addition to this a column showing total purchase is kept as the last column. Based on this type of purchase book, one can ascertain credit purchase of each type of goods as also the total credit purchase from a particular supplier.
The specimen of such columnar purchase book is as under :
(ii) Purchase book with columns for goods and expenses: When a trader purchases goods on credit, many times, the seller prepares his invoice by adding various other charges apart from the value of goods. Normally, such charges are in respect of GST, Railway freight, Wages, Carriage, etc. For the recording of these types of expenses, a purchase book having the columns of expenses is prepared which includes the columns of cost of goods as well the columns of expenses. The specimen of such columnar purchase book is as under.
