Purchases Return Book
This book is used to record all returns of goods by the trade to the suppliers. The entries in the Purchases Returns Book are generally made on the base of debit note issued to the suppliers or credit note received from the suppliers. We term it a debit note for the reason that the party’s (supplier) account is debited with the amount written in this letter. The same letter is termed as credit note from the receiving party’s point of view for the reason that he will credit the account of the party from whom he has received the letter jointly with goods. The flow of notes is as follows.
Goods might be returned because they are of the incorrect type or not up to test or because they are damaged etc. The ruling of this book is totally the similar as of purchases day book. The book and entries are made therein just the same as those made in the purchases day book.