Purchase Return (Book) Journal

When the purchases are made, it may happen that goods have to be returned to suppliers for various reasons. It is advisable to maintain a separate register or book to record these returns of purchases made. Such returns are also called “Return Outwards”. Books maintained for returns are the same as purchase books. Purchase return books will not record the return of goods sold on cash or assets purchased. It is mainly concerned with goods purchased on credit for resale that are returned to the supplier.

Purchase Return (Journal) book contains the details like name of suppliers to whom goods have been returned along with description of returned items, amount involved etc. Following is the format of purchase return book: –

Ex: Prepare Purchase Return Journal from the following transactions of Ram & Co.for the month of January 2020.

1. Returned to Laxman & Co.Mumbai, on January 4th, 2020 – 2 office chairs @ Rs. 1,500 each.
2. Returned to Bharat & Co. Nashik, on January 15th 2020 – 4 tables @ Rs.4.500 each less 10% trade discount.
3. Returned to Shatrughna & Co. Baramati, on January 23rd, 2020 – 1 Cupboard @ Rs. 7,200 each

Let us see how to prepare Purchase Return Book

In the Books of Ram & Co.
Purchase Return Book

Therefore, purchase return (journal) book records any entries that relate to returning of goods to the suppliers which were initially acquired on credit.

Chapter 4 – Recording of Transactions Accountancy Class 11

1. Cash Book
2. Purchases (Journal) Book
3. Purchases Return (Journal) Book
4. Sales (Journal) Book
5. Sales Return (Journal) Book
6. Journal Proper
7. Balancing the Accounts