Purchase Return Journal Entry With Example

Previously, we studied about Sales Returns Journal Entry, now we will study about Purchase Return Journal Entry. In Purchase Returns, when Goods purchased on Credit or On Account from supplier, then, sometimes the buyer finds that some goods are found damaged or defective or not according to the condition as specified in the order, then the buyer returned the goods to the supplier of the goods.

Following Purchase Return Journal Entry is recorded in the Purchase Returns Book of buyer’s business as show below:

                             Creditor / Accounts Payable a/c   XXX

                                                                                 Purchase Returns a/c    XXX

(Goods Returned by the Buyer)