Question

In purchases book all ------ purchases of goods are recorded

• A. Direct
• B. Indirect
• C. Credit
• D. cash

Answer 1

Answer:

C. Credit

Purchase Book (also called Purchase Day Book) is a special journal used to record all credit purchases of goods made by the business. Cash purchases are not recorded in the Purchase Book; they are recorded in the Cash Book. Summary: Credit Purchases → Purchase Book Cash Purchases → Cash Book This helps in organizing transactions efficiently before posting them to the ledger.