Purchase return book

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Information about Purchase return book

Published on February 6, 2014

Author: paraszoz



A presentation on Purchase Return Book Presented By: Paras Joshi

Subsidiary Book  It is subdivision of journal.  Also known as Special journals or day books.  Refers to books meant for specific transactions of similar nature.  Maintained under the modern methods of book-keeping.

Purchase Book Sales Book Purchase Return Book Sales Return Book Bills Receivable Book Bills Payable Book Cash Book

Purchase Return Book     Type of subsidiary book. Used to systematically record returns of goods purchased on credit in the chronological order. Also known as return outward book. A debit note is prepared at the time of returning the goods.

 Goods being defective or damaged.  Goods not in required quantity.  Not according to samples shown.  Ordered the wrong product and need to return it.

 Saving of Time.  Detection of Errors.  Quick Access to Information.  Possibility of Internal Check.

Format of Purchase Return Book/Return Outward Book In the book of….. Purchase Return Book Date (1) Particulars (2) Debit Note No. (3) LF (4) Details (5) Total Amount (6) Explanation of above specimen Column No. Column 1 Date 2 Particulars 3 Explanation It records the date of goods returned. It records the name and address of supplier of goods, description of goods and trade discount (if any). Debit Note No. It shows the number of debit note sent by the buyer. 4 Ledger Folio (LF) In this column, the page number of ledger book is recorded where the account of the suppliers is located. 5/6 Amount This column is divided into details and total sub columns. The details column is used to record the details of amounts with additions and subtractions. The total sub column shows the total amount of a purchase return transaction.

Illustration The following transaction relating to return of goods. 1st January 15th January 20th January Returned to S & Co. 10 table @ Rs.1,000 and 5 sofa @ Rs.1,500 each. Returned to Y & Co. 10 chair @ Rs.500 each, less 10% trade discount. Returned to X & Co. 10 benches @ Rs.750 each. Purchase Return Book Date Particulars Details Total Amount 1st S & Co. January 10 table @ Rs.1,000 each 5 sofa @ Rs.1,500 each 10000 7500 17500 15st Y & Co. January 10 chairs @ Rs.500 each (Less: Trade discount @ 10%) 5,000 500 4,500 20st X & Co. January 10 Benches @ Rs.750 each Total Debit Note No. LF 7,500 29,500

Purchase Return Book Posting of Individual Account To the debit side of Supplier's Account Posting of Periodic Total To the credit side of Purchase Return Account

Purchase Return Account Dr. Date Particulars 31st January To Balance c/d LF Amount Date 29,500 29,500 Particulars Cr. LF Amount 31st January By Sundry creditors a/c 29,500 1st February By Balance b/d 29,500 29,500

  It is a kind of subsidiary book which records the returns of goods purchased on credit It show the total amount of return of goods returned during a certain period.

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