Book-Keeping and Accountancy · Ch 5 — Subsidiary Books
Purchase Returns (Returns Outward) Book
Purchase Returns (Returns Outward) Book
When goods already purchased are found defective, damaged, or not as ordered, they are sent back to the supplier. Such returns of goods PURCHASED are recorded in the Purchase Returns Book, also called the Returns Outward Book.
Purchase Returns (Returns Outward) Book
The Purchase Returns Book is a subsidiary book in which goods earlier purchased on credit and now returned to suppliers are recorded, on the basis of a Debit Note sent to the supplier.
Debit Note
A Debit Note is a document sent by a buyer to a supplier, informing the supplier that their account has been debited (reduced) by the stated amount because of goods returned or an overcharge.
Format of the Purchase Returns Book
| Date | Particulars (Name of Supplier) | Debit Note No. | L.F. | Taxable Value (₹) | CGST (₹) | SGST (₹) | Total (₹) |
|---|
Because GST was originally charged on the goods now being returned, the tax must also be reversed proportionately — the return effectively cancels part of the original purchase, tax included.
Illustration 3 — Preparing a Purchase Returns Book
Continuing Illustration 1's suppliers (GST @ 12%), the following goods were returned:
- Mar 4 — Returned goods to Mahesh Traders, taxable value ₹2,000, Debit Note No. 12.
- Mar 12 — Returned goods to Suresh & Co., taxable value ₹1,000, Debit Note No. 13.
Working: Mahesh Traders — CGST 6% of ₹2,000 = ₹120; SGST = ₹120; total = ₹2,240. Suresh & Co. — CGST = ₹60; SGST = ₹60; total = ₹1,120.
Purchase Returns Book, for March
| Date | Particulars | Debit Note No. | L.F. | Taxable Value (₹) | CGST (₹) | SGST (₹) | Total (₹) |
|---|---|---|---|---|---|---|---|
| Mar 4 | Mahesh Traders | 12 | 2,000 | 120 | 120 | 2,240 | |
| Mar 12 | Suresh & Co. | 13 | 1,000 | 60 | 60 | 1,120 | |
| Total | 3,000 | 180 | 180 | 3,360 |
Check: 2,240 + 1,120 = ₹3,360, and 3,000 + 180 + 180 = ₹3,360 — both agree. …
A subsidiary book recording goods earlier purchased on credit and now returned to suppliers, base …
A document sent by a buyer to a supplier, informing them that their account has been debited by the stated amount due to goods ret …