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Goods returned to panjak 12,000

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Goods returned to panjak 12,000
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Gaurav Seth 3 years, 10 months ago

At times it might be necessary to return a few goods back to a supplier when an order is received. This situation may arise due to the poor quality of products, inaccurate quantity, untimely delivery or other such reasons.

Purchase returns are also called returns outward and an appropriate purchase returns or returns outward book is maintained for recording entries related to such books. All returns are primarily recorded in the purchase returns book unless the returns are not that frequent, in which case they are recorded in the journal. The journal entry to be passed in the case of purchase returns is

Creditor A/c – Dr.                    XX

To Purchase return A/c                       XX

 

In the given query the entry will be:
Pankaj A/c – Dr.                    12,000
To Purchase return A/c                       12,000

 

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