Purchase returns journal
A purchase returns journal (also known as returns outwards journal/purchase debits daybook) is a prime entry book or a daybook which is used to record purchase returns. In other words, it is the journal which is used to record the goods which are returned to the suppliers. The source document which is used as an evidence in recording transactions into purchase returns journal is the Debit note.[1][2][3]
Reasons for purchase returns
[edit]- Damages
- Expiration of products/outdated
- Different brands
- Out of the order
- My foundation one missing
Structure of a purchase returns journal
[edit]| Date | Debit note
no |
Suppliers | Value | L/P |
|---|---|---|---|---|
| 15/05/2020 | 002 | Gomez Factors LTD | $900 |
Double entry for purchase returns without VAT value
[edit]- Creditors a/c Debit (Account payable) - suppliers $600
- Purchase returns a/c Credit - value $600
| Date | Debit note
no |
Suppliers | Value | VAT | Total value | L/P |
|---|---|---|---|---|---|---|
| 04/01/2017 | 002 | Rogers | $600 | $50 | $650 |
Double entry for purchase returns with a VAT value
[edit]- Creditors a/c Debit - total value $ 650
- Purchase returns a/c Credit - value $600
- VAT a/c Credit - VAT $50
See also
[edit]References
[edit]- ^ "Accounting for Purchase Returns - Explanation and Detailed Examples". accounting-simplified.com. Retrieved 2017-10-16.
- ^ "Purchases Returns or Returns Outwards Journal - Definition, Explanation and Example - accountingExplanation.com". www.accountingexplanation.com. Retrieved 2017-10-16.
- ^ "Purchase Return | Double Entry Bookkeeping". Double Entry Bookkeeping. 2013-06-17. Retrieved 2017-10-16.