Posting from Purchases Book Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

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FAQs on Posting from Purchases Book Video Lecture - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

1. What is a purchases book and why is it important in accounting?
Ans. A purchases book is a record that tracks all purchases made by a business. It is important in accounting as it helps in maintaining an accurate record of all purchases, which is necessary for preparing financial statements, analyzing expenses, and managing inventory.
2. How is the purchases book different from the sales book?
Ans. The purchases book and the sales book are two separate records used in accounting. The purchases book records all purchases made by the business, while the sales book records all sales made by the business. The purchases book focuses on incoming goods or services, while the sales book focuses on outgoing goods or services.
3. What information is typically recorded in a purchases book?
Ans. A purchases book usually includes details such as the date of purchase, the name of the supplier, a description of the purchased goods or services, the quantity purchased, the unit price, and the total amount. It may also include additional columns for discounts, taxes, and other relevant information.
4. How does the purchases book help in controlling inventory?
Ans. The purchases book plays a crucial role in controlling inventory as it provides a clear record of all incoming goods or services. By accurately recording purchases, businesses can track the quantity and value of inventory, identify any discrepancies, and ensure proper stock management. This helps in avoiding stockouts, minimizing excess inventory, and optimizing the overall inventory levels.
5. Can the purchases book be used for both cash and credit purchases?
Ans. Yes, the purchases book can be used to record both cash and credit purchases. Cash purchases refer to transactions where immediate payment is made, while credit purchases involve buying goods or services on credit with payment due at a later date. The purchases book allows businesses to record and track both types of purchases, providing a comprehensive overview of all incoming goods or services, regardless of the payment method used.
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