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 −

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 −