Differentiate between purchase book and purchase account



The major differences between a purchase book and a purchase account are as follows −

Purchase book

  • Purchase book is the book, which records all the credit transactions related to the goods purchased.
  • Primary book of accounts.
  • The purpose of a purchase book is to maintain all the credit transactions related to the goods purchased.
  • Records only transactions related to credit business.
  • Purchase book balance is not transferred to business financial statements.
  • No separate credit column.
  • Not dependent on other books.
  • The format of purchase book is as follows −
DateParticularsInvoice numberLedger folioDetailsAmount






Purchase account

  • Purchase account is the ledger account that records all the credit and cash transactions related to business.
  • Secondary book of accounts.
  • The purpose of a purchase account is to maintain the record of total stock (goods purchased) in a financial year.
  • It records both credit and cash transactions related to business.
  • Purchase account balance is transferred to the trading account in the financial statement.
  • It has credit columns and debit columns.
  • Dependent on journal day books.
  • The format of a purchase account is as follows −
DateParticularsJournal folioAmountDateParticularsJournal folioAmount










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