Difference between Purchase Book and Purchase Account

Here we detail about the difference between purchase book and purchase account.

Purchase Book:

1. Purchase book is a part or sub-division of journal.

2. Purchase book is a sub-division of journal and is not divided into debit and credit sides.

3. Purchase book contains the information about the credit purchases of goods only.

4. Total balance of purchase book is transferred to the debit side of Purchase Account.

Purchase Account:

1. Purchase account is a part of ledger.

2. Purchase account is a part of ledger and is divided into two sides viz. debit and credit.

3. Purchase account contains the information about the total purchases of goods, because in this book cash purchases and total of credit purchases from the purchase book are recorded.

4. Balance of purchase account is to be transferred to the debit side of trial balance and thereafter to the Trading Account.