Difference between Purchases Book and Purchases Account


Basis

Purchases Book

Purchases Account

1. part

It is part of Journal.

It is part of Ledger.

2. format

Like ledger account, it does not have debit  and credit columns.

It has debit and credit columns.

3. content

Only credit purchases of goods dealt in or  consumed for production are recorded.

Credit as well as cash purchases of goods dealt  in or consumed for production are recorded.

4. amount

Total of Purchases Book is posted to the  Purchases Account.

Balance in the account is transferred to the  Trading Account.

 

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