What is Purchase Journal?

Ans.- A purchase journal is a financial record used to record all purchases made by a business. It is used to track the cost of goods or services that are purchased from vendors and suppliers. Each entry in the purchase journal includes the date, vendor, amount, and description of the purchase. The purchase journal is used to track the cost of goods or services that are used in the production of the business’s products or services, as well as the cost of operating the business. The information recorded in the purchase journal is used to prepare financial statements such as the balance sheet and income statement, and to calculate the cost of goods sold (COGS) for tax purposes.