Purchases
Code: 5111
👁 Views: 97
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Cost of goods purchased for resale
Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 2
Inventories
US GAAP
ASC 330
Inventory
❓ Frequently Asked Questions
Q: What are purchases?
A: Cost of buying goods or materials for resale or production use, recorded at purchase price after deducting trade discounts.