Finance:Purchase returns journal
From HandWiki
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
- Damages
- Expiration of products/outdated
- Different brands
- Out of the order
- My foundation one missing
Structure of a purchase returns journal
Structure without a VAT column
| Date | Debit note
no |
Suppliers | Value | L/P |
|---|---|---|---|---|
| 15/05/2020 | 002 | Gomez Factors LTD | $900 |
Double entry for purchase returns without VAT value
- Creditors a/c Debit (Account payable) - suppliers $600
- Purchase returns a/c Credit - value $600
Structure with a VAT column
| 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
- Creditors a/c Debit - total value $ 650
- Purchase returns a/c Credit - value $600
- VAT a/c Credit - VAT $50
See also
References
- ↑ "Accounting for Purchase Returns - Explanation and Detailed Examples". http://accounting-simplified.com/accounting-for-purchase-returns.html.
- ↑ "Purchases Returns or Returns Outwards Journal - Definition, Explanation and Example - accountingExplanation.com". http://www.accountingexplanation.com/purchases_returns_journal.htm.
- ↑ "Purchase Return | Double Entry Bookkeeping" (in en-US). Double Entry Bookkeeping. 2013-06-17. http://www.double-entry-bookkeeping.com/inventory/purchase-return/.
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