Purchases Returns Book:
Definition and Explanation:
Purchases returns book is a book in which the goods returned to suppliers are recorded. It is
also called returns outward book or purchases returns day book. Goods may be returned because they are of
the wrong kind or not up to sample or because they are damaged etc. The
ruling of this book is absolutely the same as of
purchases day book. The book and entries are made therein just the same
as those made in the
purchases day book.
Posting:
The total of the purchases returns or returns
outwards book is credited to returns outward account or purchases return
account (being the goods sent out). Individual suppliers to whom goods are
returned are debited (because they receive the goods).
Debit Note:
When the goods are returned to the suppliers,
an intimation is sent to them through what is known as a debit note.
These debit notes serve as vouchers for these entries. A debit note is a
statement sent by a businessman to another person, showing the amount
debited to the account of the later. Debit notes are usually serially
numbered and are prepared in the same form as that of the invoice.
Form of the Debit Note:
Debit Note
Messrs Rehman & Sons
Standard Road
Multan
|
Lahore,
March 19, 1991. |
To goods returned:
10 shirts at $12
10 pairs trousers at $20
Goods returned as per R/R No.........dated....... |
120
200
|
|
320 |
| E & O. E |
For Good Luck & Co.
Partner |
Format of Purchases Returns Book:
The following is the format of purchases
Returns
book:
|
Date |
Particulars |
D/N |
L.F. |
Amount |
| |
|
|
|
|
Example:
From the following transactions of a trader prepare the purchases returns day book
and post it into ledger:-
| 1991 |
|
$ |
| January 8 |
Karim & Sons |
135 |
| "
20 |
Fazal Din & Co. |
150 |
| "
31 |
Saeed Bros. |
250 |
Solution:
Purchases Day Book
|
Date |
Particulars |
D/N |
L.F. |
Amount |
|
1991
Jan. 8
" 20
" 31 |
Karim & Sons
Fazal Din & Co.
Saeed Bros.
|
|
|
$
135
150
250 |
|
535 |
Purchases Returns Account
|
|
|
|
1991
Jan. 31 |
By Purchases as per P.R.B. |
$
535 |
Karim & Sons
|
1991
Jan. 8 |
To Purchases returns |
135
|
|
|
|
Fazal Din & Co.
|
1991
Jan. 20 |
To Purchases Returns |
$
150 |
|
|
|
Saeed Bros.
|
1991
Jan. 31 |
To Purchases
|
$
250
|
|
|
|
|
