Differences Between Purchases Returns Book And Sales Returns Book
Purchases Returns Book shows those goods retur n ed i.e., Purchases Returns , which are retur ned b y t he b usi ness to its suppliers / vendors to w h om t h e b usi ness purc h ased goods b ut fou nd defective or damaged or not delivered according t h e conditions as agreed upon w hile Sales Returns Book records those goods retur ned i.e., Sales Returns w hich are retur ned b y the customers to the b usi ness. T he b ala nce of purc hases retur ns b ook is credit which is tra nsferred to purc hases retur ns ledger w hile the de b it b ala nce of sales return Journal is transferred to sales returns ledger at t he e nd of t he accou nting period. Purchases Retur ns Journal records Purc hases Retur ns or Purc hases Outwards as a C ontra Expense Account w hile Sales Retur ns b ook records Sales Retur ns / Sales Inwards as a Contra Revenue Account .