2.4.11 Purchases
Buying of goods by the trader for selling them to his customers is known as
Purchases. As the trade is buying and selling of commodities purchase is the main
function of a trade. Here, the trader gets possessing of the goods which are not for
own use but for resale. Purchases can be of tow types. Viz, cash purchases and credit
purchases. If cash is paid immediately for the purchase, it is cash purchases, If the
payment is postponed, it is credit purchases.