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I have a question on PA. When you gain the required PA to buy a Magic Item and Spend the gold do you loose the PA or IS the PA just used to restrict the GP value of an ITem that the character can purchase?
No you don not lose the PA when you buy an item based on what you can spend due to your PA.
The only time you spend PA is when you use "Faction Favors" on Table 11-1 in the PFS Guide. and even then it does not affect how much you can spend based on total PA.
to be clearer you track PA in 2 ways.
CPA - Current Prestige Award
TPA - Total Prestige Award
On your sheet it would look like this CPA/TPA
Your CPA Is equal to your TPA minus any Benefits you bought from table 11-1. Your TPA is all the PA you have gained through out your playtime, the TPA is what you use to figure out what the Maximum gold spent in Items.
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I just want to say that Dragnmoon should never reply to a post where someone uses the same avatar as him, it's too confusing.
As for the original post, you spend either gold or PA, never both.
As DM suggest how much gold you can spend on an item is based on how much total PA you've earned, not based on your current balance.