Purchases 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. The flow of notes is as follows.

From the following transactions of a trader let us now prepare the purchases returns day book and post it into ledger

Date		Amount
January 8,2005	Karim & Sons.	135
" 20	varun & Co.	150
" 31	patil Bros.	250

Purchases Return Book
Date	Particulars	D/N	L.F.	Amount $
January 8,2005	Karim & Sons.			135
January 20	varun & Co.			150
January 31	patil  Bros			250
				Total : 535

Now the individual entries are posted in their respective Ledgers as shown below:

Dr		Purchases Return Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
				January 31,2005	By Purchases as per P.R.B		535

Dr		Karim & Sons Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
January 8,2005	To Purchases returns		135

Dr		Varun & Co's Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
January 20,2005	To Purchases returns		150

Dr		Patil Bros Account					Cr
Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
January31,2005	To Purchases returns		250

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