Accountancy · Ch 6 — Subsidiary Books – I
Purchases Return Book (Returns Outward Book)
Purchases Return Book (Returns Outward Book)
When goods purchased on credit are returned to the supplier — because they are defective, not as ordered, or supplied in excess — the return is recorded in the Purchases Return Book (also called the Returns Outward Book). The source document here is the Debit Note, which the buyer sends to the supplier stating that the supplier's account has been debited (i.e., the amount the buyer owes has been reduced) by the value of goods returned.
| Date | Particulars (Supplier's Name) | Debit Note No. | L.F. | Amount (₹) |
|---|
If the original purchase had been recorded net of a trade discount, the return must also be entered in the Purchases Return Book at the same net, post-trade-discount value — the trade discount originally allowed on those particular units is not a separate adjustment; it is already built into the net figure at every stage. …
A document sent by a buyer to a supplier stating that the supplier's account has been debited for goods returned; the source document for every entry in …
The ledger account, credited with the periodic total of the Purchases Return Book, that reduces the effective cost of goods purchased …