Format of Purchase Book
Explanations to Various Columns of Purchase Book:
(a) Date: It represents the date on which the deal took place. In this column, the date of the transaction, on which goods were purchased on credit, shall be recorded.
(b) Invoice Number: The number of invoice (i.e., basis document) showing the purchase of goods shall be recorded in this column.
(c) Name of the Suppliers: In this column, name of the individual/supplier, from whom the goods were purchased, shall be written along with detailed narrative of goods viz., amount, quality, rate, gross amount, trade discount and sales tax etc.
(d) Ledger Folio (L.F.): This column shows the page number of the suppliers account in the ledger accounts. Page number of the ledger of the supplier on which the transaction is recorded shall be recorded in this column.
(e) Details: It reveals the amount of goods purchased and the amount of trade discount. The individual total amount of various items, if purchased from the same supplier, shall be recorded in this column. Total trade discount by the supplier and sales tax paid (if any) shall also be adjusted in this column.
(f) Total Amount: This column represents the net price of the goods, i.e, the amount which is payable to the creditors after adjusting discount and expenses if any. The total of this column shall be transferred to the debit side of purchases account.
At the end of each month, the purchase book is totaled. The total shows the total amount of goods or materials purchased on credit.