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Purchase Return Book
This book is used to record all returns of goods by the business to the suppliers. The entries in the Purchases Returns Book are usually made on the basis of debit note issued to the suppliers or credit note received from the suppliers. We call it a debit note because the party’s (supplier) account is debited with the amount written in this note. The same note is termed as credit note from the receiving party’s point of view because he will credit the account of the party from whom he has received the note together with goods.
Posting and Balancing
The individual entries and the periodic total of the Purchase Return Book are posted into the Ledger as under:
Step 1 → Individual amounts are daily posted to the debit of supplier accounts by writing “To Purchases Return A/c” in the particulars column.
Step 2 → Periodic total is posted to the credit of purchases return account by writing “By Sundries as per Purchases Return Book” in the particulars column.
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