Purchases Books is a subsidiary book in which credit purchases of goods, i.e., goods in which the firm deals or uses for manufacturing goods are recorded. Thus, cash purchases of goods and non-goods like fixed assets are not recorded in Purchases Book. The entries in the Purchases Book are recorded on the basis of Invoices received from the suppliers with the amount net of trade discount plus GST (CGST and SGST or IGST) payable. Ruling of Purchases Book or Purchases Journal: The ruling of a Purchases Book or Purchases Journal is as follows:                                        

                                                                PURCHASES BOOK OR PURCHASES JOURNAL
















Input CGST


Input SGST


Input IGST


Freight Cartage,

Etc. (₹)(9)
















The Purchases Book has eleven columns:

1.  Date: The date of transaction is written.

2.  Particulars: The name of the seller of goods, name of the articles and quantities purchased are written.

3. Invoice No.: Invoice number of the goods purchased is written.

4. Ledger Folio (L.F.): When the Purchases Book is posted to the ledger, the page number of the ledger is written.

5. Details: The amount in respect of each article is written in this column. If trade discount is allowed by the seller, it is deducted from the gross amount. Thereafter, GST (IGST or CGST and SGST) is levied.

6.  Cost: Cost of goods purchased, i.e., excluding GST (IGST or CGST and SGST) payable and expenses payable and expenses payable, if any.

7. Input CGST. The amount of CGST payable on intra-state (i.e., within the state) purchases is written.

8. Input SGST: The amount of SGST payable on intra-state (i.e., within the state) purchases is written. 9. Input IGST: The amount of IGST payable on inter-state (i.e., outside the state) purchases is written.

10. Expenses: The expenses e.g. freight,cartage or packing material, etc. payable to the seller is written.

 11. Total Payable: The amount of invoice including GST (IGST or CGST and SGST) and expenses payable is written. At the end of a specified period (a week, a fortnight or a month) the Purchases Book is totalled. This total is posted to the Purchases Account. 

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