Purchases

In accounting, purchases mean the buying of goods or assets for sale or production or other short term and long term goals. There are two main types of purchases. One is purchases of fixed assets and second is purchases of regular stock. As per the nature of business, these two types of purchases apply different way. For example, one company purchases shares for long term investment but second company purchases shares as its product because it has bought shares for selling quickly.

All purchases are done through purchase department. Purchase manager passes the order of purchase when company requires goods for production. Purchase department is also manage all things relating  to the receipt of goods.

Due to it is the part of major investment of business. Purchase department tries to get goods at cheap rates, so that company can save money on purchasing.

Accounting Treatment of Purchases of Stock of Company

 It will increase the value of inventory when calculates it . For recording this, we open purchase book and add all purchases in it which we bought on specific date. This book is the part of subsidiary book. Many computer accounting software use purchase voucher for passing the voucher entry of buying any goods for business.

See also




.
Name

"accounting software" "cost accountant" "financial management" account accountant accounting accounting education accounting format accounting glossary accounting questions accounting software ad advertising american express answer auditing b.com balance sheet bank bba BCA bonus business Business Dictionary CA CA- IPCC CA-CPT CA-Final capital career Category cfa children coaching company conferences Consignment Accounting contact corporate accounting cost cost accounting CPT credit card debit card debt degree depreciation dictionaries donation earning ecommerce economics education Events finance Finance Dictionary financial financial accounting financial mathematics Financial Ratios forex management free funds google google apps google talk guest writer Help Center ICWAI IFRS inspiration insurance terms interest journal entries lectures List m.com management accounting mathematics MBA MCA media mutual funds ngo notes overhead pdf pnb presentation Prof. Vinod profiles quickbooks quiz ratio rbi reporting Service Tax shares solution students tally tax teacher teaching Test Testimonials tips treasury management tutorial UGC NET Commerce video webinars Wikipedia working capital
false
ltr
item
Education of Accounting : Purchases
Purchases
Education of Accounting
http://education.svtuition.org/2010/06/purchases.html
http://education.svtuition.org/
http://education.svtuition.org/
http://education.svtuition.org/2010/06/purchases.html
true
8374141921294355176
UTF-8
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock