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If goods purchased for credit are recorded in purchase book, then Goods purchased for cash are recorded in which book. And explain with journal entries.
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If goods purchased on cash is 2000 and Rs.1000 from A also Rs.2000 from B on credit, entry in the books will be Purchases a/c Dr 5000 To cash a/c 2000 To A a/c 1000 To B a/c 2000 Simply, we record only A and B's transaction in purchase book to know the sundries (overall). We record the sundries in debit side of Purchases a/c along with cash transaction. But your doubt is to where the cash transaction be recorded, the cash purchases will recorded in the cash book's credit side. Like I did in the attachment..,
Thread Starter
Sai Dhanush ReddyIf we purchased goods for cash then can we record it in purchase book?
No! Only credit purchases are recorded in purchase book
For credit purchases the entries is Purchase a/c. Dr To x's a/c It means in ledger X's a/c => debit side Purchase book => credit side. ________________________________________ For cash purchases the entries is Purchase a/c. Dr To cash a/c Then in ledger Cash a/c => debit side ???? a/c => credit side
Thread Starter
Sai Dhanush ReddyIt means purchase book and purchase a/c are different
Yes, purchases a/c is a ledger which records all the purchase transactions. But where as this subsidiary purchase book will look over only credit purchases.
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