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Purchase returns journal

From Wikipedia, the free encyclopedia

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

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  • Damages
  • Expiration of products/outdated
  • Different brands
  • Out of the order
  • My foundation one missing

Structure of a purchase returns journal

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Structure without a VAT column

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Date Debit note

no

Suppliers Value L/P
15/05/2020 002 Gomez Factors LTD $900

Double entry for purchase returns without VAT value

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  • Creditors a/c Debit (Account payable) - suppliers $600
  • Purchase returns a/c Credit - value $600

Structure with a VAT column

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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

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  • Creditors a/c Debit - total value $ 650
  • Purchase returns a/c Credit - value $600
  • VAT a/c Credit - VAT $50

See also

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References

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  1. ^ "Accounting for Purchase Returns - Explanation and Detailed Examples". accounting-simplified.com. Retrieved 2017-10-16.
  2. ^ "Purchases Returns or Returns Outwards Journal - Definition, Explanation and Example - accountingExplanation.com". www.accountingexplanation.com. Retrieved 2017-10-16.
  3. ^ "Purchase Return | Double Entry Bookkeeping". Double Entry Bookkeeping. 2013-06-17. Retrieved 2017-10-16.