Differences Between Purchases Returns Book And Sales Returns Book

Purchases Returns Book shows those goods returned i.e., Purchases Returns, which are returned by the business to its suppliers / vendors to whom the business purchased goods but found defective or damaged or not delivered according the conditions as agreed upon while Sales Returns Book records those goods returned i.e., Sales Returns which are returned by the customers to the business.

The balance of purchases returns book is credit which is transferred to purchases returns ledger while the debit balance of sales return Journal is transferred to sales returns ledger at the end of the accounting period.

Purchases Returns Journal records Purchases Returns or Purchases Outwards as a Contra Expense Account while Sales Returns book records Sales Returns / Sales Inwards as a Contra Revenue Account.