The document discusses the purchase return book, which is a subsidiary book used to systematically record returns of goods purchased on credit. It contains details of items returned such as date, supplier name and address, item description, quantity returned, and amount. The total amount of returns is posted periodically from the purchase return book to the purchase return account. The purchase return account is closed by transferring the balance to the sundry creditors account.

1. A presentation
on
Purchase Return Book
Presented By:
Paras Joshi

2. Subsidiary Book

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.

3. Purchase Book
Sales Book
Purchase Return Book
Sales Return Book
Bills Receivable Book
Bills Payable Book
Cash Book

4. Purchase Return 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.

5. 
Goods being defective or damaged.

Goods not in required quantity.

Not according to samples shown.

Ordered the wrong product and need to
return it.

6. 
Saving of Time.

Detection of Errors.

Quick Access to Information.

Possibility of Internal Check.

7. Format of Purchase Return Book/Return Outward Book
In the book of…..
Purchase Return Book
Date
(1)
Particulars
(2)
Debit Note No.
(3)
LF
(4)
Details
(5)
Total Amount
(6)
Explanation of above specimen
Column No.
Column
1
Date
2
Particulars
3
Explanation
It records the date of goods returned.
It records the name and address of supplier of goods,
description of goods and trade discount (if any).
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.

8. Illustration
The following transaction relating to return of goods.
1st January
15th January
20th January
Returned to S & Co. 10 table @ Rs.1,000 and 5 sofa @ Rs.1,500 each.
Returned to Y & Co. 10 chair @ Rs.500 each, less 10% trade discount.
Returned to X & Co. 10 benches @ Rs.750 each.
Purchase Return Book
Date
Particulars
Details
Total
Amount
1st
S & Co.
January 10 table @ Rs.1,000 each
5 sofa @ Rs.1,500 each
10000
7500
17500
15st
Y & Co.
January 10 chairs @ Rs.500 each
(Less: Trade discount @ 10%)
5,000
500
4,500
20st
X & Co.
January 10 Benches @ Rs.750 each
Total
Debit
Note No.
LF
7,500
29,500

9. 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

10. Purchase Return Account
Dr.
Date
Particulars
31st
January
To Balance
c/d
LF Amount Date
29,500
29,500
Particulars
Cr.
LF Amount
31st
January
By Sundry
creditors
a/c
29,500
1st
February
By Balance
b/d
29,500
29,500

11. 

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.