Purchase Return Book | Subsidiary Books | Examples

Purchase Return Book Feature Images

Purchase Return Book:-

Purchase Return Book is that book in which we record the goods returned to the supplier or the vendor. it is also called “Return Outward Book”, “Purchase Return Journal”  and “Purchases Returns Day Book”. We need to return goods when these goods are not up to the level of sample goods sent by the supplier or defective goods received.

The process of Purchase Return  : –

When goods returned and we will issue the Debit/Credit note against these goods to the supplier of the goods. We will Debit the account of supplier and credit the Purchase return account.

What Is Debit Note or Credit Note: –

When the buyer issues a Debit/Credit Note against Purchase Return Then it will be the Debit note for the buyer and Credit Note for the Supplier Because of buyer will Debit the Supplier like below:

  • Journal Entry for Purchase Returns In the books of Buyer/Customer: –

DD/MM/YY  Supplier’s A/c                       Dr      XXXX

                             To Purchase Return A/c                      XXXX

and Supplier will Credit the Buyer (It is Double Entry system)

  • Journal Entry for Sales Returns In the books of Supplier/Vendor : –

DD/MM/YY  Sales Returns A/c,                Dr       XXXX

                             To Buyer’s A/c                                      XXXX

So, Debit/Credit Note is Debit Note for the one party and Credit Note for the other party.

The Debit/Credit Note Format as shown below:

Debit Credit Note Format - Purchase Return Book | Subsidiary Books | Examples
Debit- Credit Note Format

Example:-

From the following particulars, prepare the Purchases Return Book of a Stationary merchant M/s Pen Store –  Hoshiarpur Punjab India:

01/04/2018 The following Goods returned to M/s Ram & Sons – “Jalandhar Punjab India” because these are defective.

10 Packets of the ball pens @ Rs 20 per Packets

10 Packets of the Ink pens @ Rs 40 per Packets

04/04/2018 The following Goods returned to M/s sham & Sons – “Ludhiana Punjab India” because these are defective.

2 Ream of the A4 size paper reams @ Rs 150 per Ream

20 Pcs of the Small Note Book  @ Rs 18 per pcs

10 Pcs of the Lager Note Book  @ Rs 28 per pcs

Solution: –

First of all, we have to generate Debit note of these goods after that we will post these transactions into the Purchase Return Book. I will show you step by step as follows: –

Debit Note No. 01  - Purchase Return Book | Subsidiary Books | Examples
Debit Note No. 01
Debit Note No. 02  - Purchase Return Book | Subsidiary Books | Examples
Debit Note No. 02

Now we will post it into the Purchase Return Book.

*Note: – Here we are showing posting of both the transaction together but in real We have to post each transaction individually when the debit note issued to the supplier means date wise.

Purchase Return Book Example 1  - Purchase Return Book | Subsidiary Books | Examples
Purchase Return Book Example

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