Purchase Returns Book Format

Previously, we studied about Purchase Book Format, but here will we will particularly study about Purchase Returns Book and its format. It is to be noted that Only Credit Purchases are recorded in this book because Cash Purchases are recorded in Cash Book, so Purchase Return Book is the example of Special Journal.

You Can Also Read Out, “Sales Returns Book Format”

When the goods purchased by the buyer on credit basis finds that some goods are not according to the order specified or goods are damaged or are in unsatisfactory conditions, etc, then he Debit the Supplier or Accounts Payable Account and returned the goods by sending a Debit Note to the supplier mentioning the reasons of returning.

Purchase Return Journal Entry

Example:- Mr. A purchased 5 Fans for Rs. 50000 (10000 each) from Mr. B (Supplier). At the time of delivery, he found that 1 fan is not in good condition, then he debit the account of Supplier and credit the Purchase Return account as shown below:

                                               Mr. A     10000

                                                         Purchase Return a/c       10000

(One Fan Of Rs. 10000 Returned To Mr. B due to Lower Quality)

This Accounting Journal Entry is posted to Purchase Return Account as shown below:

 Purchase Return Account

                               Rs.                                                                                    Rs.

                                                                                                  Mr. B            10000

If there is no further entry of purchase return during the current accounting, then this is the final amount which is transferred to Income Statement by passing Closing Journal Entries.

Purchase Returns Book Format is the similar with Purchase Book Format

Date    Particulars / Descriptions                               L/F              Debit         Credit

                                                                                                         Rs.              Rs.

Purchase Returns Book is also known as Return Outward Book because it is the returning of the goods by the customer or buyer to the Seller.