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. Financial Accounting
TOPIC 8
The Returns Journal
CIK NURUL NAJIHAH KHAIRUDIN

2. Return
inwards Return
outwards
Purchases Return
&
Debit Notes
Sales Return
&
Credit Notes

4. Sales Return Book
Used to systematically record returns
of goods by customers
Known as Return Inwards Book
 A credit note is prepared at the time
of receiving returning goods.

5. Returns Occur For Some
Reasons:

6. Posting purchase return to the
ledger

7. Example of Posting Purchase
Return
Purchases Ledger
J Black
2009 Folio RM
Sept 7 Return
Outwards
RO7 40
Returns Outwards Day Book
2009 Note No. Folio Amount
(RM)
Sept 7 J Black 9/101 PL 13 40
16 B Hamilton 9/102 PL 40 240
28 C Brown 9/103 PL 61 30
30 K Gabriel 9/104 PL 62 360
GL 76 670
(page 7)
(page 13)

8. B Hamilton
2009 Folio RM
Sept 16 Return
Outwards
RO 7 240
C Brown
2009 Folio RM
Sept 28 Return
Outwards
RO 7 30
K Gabriel
2009 Folio RM
Sept 30 Return
Outwards
RO 7 360
General Ledger
Return Outwards
2009 Folio RM
Sept 30 Returns
for the
month
RO 7 670
(page 40)
(page 61)
(page 62)
(page 76)

9. Posting sales return to the
ledger
Sales Return Book
To the credit side of
Customer’s Account
To the debit side of
Sales Return
Account

10. Example of Posting Sales Return
Sales Ledger
Tom
2009 Folio RM
Sept 7 Return
Inwards
RI 10 40
Returns Inwards Day Book
2009 Note No. Folio Amount
(RM)
Sept 7 Tom 9/37 SL 5 40
16 Bro Philip 9/38 SL 23 240
28 James 9/39 SL 39 30
30 Sara 9/40 SL 45 360
GL 72 670
(page 10)
(page 5)

11. Bro Philip
2009 Folio RM
Sept 16 Return
Inwards
RI 10 240
James
2009 Folio RM
Sept 28 Return
Inwards
RI 10 30
Sara
2009 Folio RM
Sept 30 Return
Inwards
RI 10 360
General Ledger
Return Inwards
2009 Folio RM
Sept 30 Returns for
the month
RI 10 670
(page 23)
(page 39)
(page 45)
(page 72)

12. Thank You!