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Presented By:Paras Joshi
A presentation on
Purchase Return Book
Background & Origin
It is subdivision of journal.
Also known as Special journals or day books.
Refers to books meant for specific transactions of similar nature.
Maintained under the modern methods of book-keeping.
Subsidiary Book
Types of Subsidiary BookPurchase Book
Sales Book
Purchase Return Book
Sales Return Book
Bills Receivable Book
Bills Payable Book
Cash Book
Type of subsidiary book.
Used to systematically record returns of goods purchased on credit in the chronological order.
Also known as return outward book.
A debit note is prepared at the time of returning the goods.
Introduction Purchase Return Book
Goods being defective or damaged.
Goods not in required quantity.
Not according to samples shown.
Ordered the wrong product and need to return it.
Purchased goods are returned for some reasons:
Saving of Time.
Detection of Errors.
Quick Access to Information.
Possibility of Internal Check.
IMPORTANCE AND ADVANTAGES
Date(1)
Particulars(2)
Debit Note No.(3)
LF(4)
Details(5)
Total Amount(6)
Column No. Column Explanation
1 Date It records the date of goods returned.
2 Particulars It records the name and address of supplier of goods, description of goods and trade discount (if any).
3 Debit Note No. It shows the number of debit note sent by the buyer.
4 Ledger Folio (LF)
In this column, the page number of ledger book is recorded where the account of the suppliers is located.
5/6 Amount This column is divided into details and total sub columns. The details column is used to record the details of amounts with additions and subtractions. The total sub column shows the total amount of a purchase return transaction.
Explanation of above specimen
Format of Purchase Return Book/Return Outward BookIn the book of…..
Purchase Return Book
Illustration
Date Particulars Debit Note No.
LF Details Total Amount
1st January
S & Co.10 table @ Rs.1,000 each5 sofa @ Rs.1,500 each
100007500
17500
15st January
Y & Co.10 chairs @ Rs.500 each(Less: Trade discount @ 10%)
5,000500
4,500
20st January
X & Co.10 Benches @ Rs.750 each
7,500
Total 29,500
The following transaction relating to return of goods.1st January Returned to S & Co. 10 table @ Rs.1,000 and 5 sofa @ Rs.1,500 each.15th January Returned to Y & Co. 10 chair @ Rs.500 each, less 10% trade discount. 20th January Returned to X & Co. 10 benches @ Rs.750 each.
Purchase Return Book
Purchase Return Book
Posting of Individual Account
To the debit side of Supplier's Account
Posting of Periodic Total
To the credit side of Purchase Return Account
Posting in the Ledger from Purchase Return Book
Date Particulars LF
Amount
Date Particulars LF
Amount
31st January
To Balance c/d
29,500
29,500
31st January
By Sundry creditors a/c
29,500
29,500
1st February
By Balance b/d
29,500
Posting in the Ledger from the above Purchase Return Book
Purchase Return AccountDr. Cr.
It is a kind of subsidiary book which records the returns of goods purchased on credit
It show the total amount of return of goods returned during a certain period.
CONCLUSION
Thank you
