'Cash purchases' means any payment you make to suppliers with whom you do not have an account. As you don't have an account, you will have to pay for the goods at the time when you buy them.
Examples of the types of supplier from whom you might make Cash purchases include:
- your local cash and carry
- local retailers
- suppliers that you use only very occasionally
- online suppliers that require payment at the time of purchase
Cash purchases only include items that you buy for resale. They don't include items such as business stationery. Don't include things like this here. They're covered elsewhere in the cash flow.
Remember to keep safely all the invoices and receipts for Cash purchases, even if the amounts are small.