- Purchase book is also known as purchase journal \ Bought Day Book.
- It records goods purchased on credit basis only(in the ordinary course of business)
- It does not record goods purchased for cash as it is recorded in cash book
- It does not record purchases of assets (like furniture, machinery etc.), whether for cash or on credit, as they are recorded in cash book and journal proper respectively
- Periodically, the total of Purchase book is transferred to Purchases account.
Note: Credit purchases are recorded in the Purchase book at their net value (Cost-Trade Discount).