Tuesday, 18 July 2017

Journal Entry for Purchase Return

Journal Entry for Purchase Return

In this article we would discuss the journal entry for purchase return. There are two methods for recording the purchase return.In first method the purchase return is credited to purchase account by debiting the relevant account (who returned the purchases). It is a kind of reversal entry for purchase.

Date
Particular
Ledger Folio
Dr.
Cr.
01-01-2017
Cash/Bank

 xxx

01-01-2017
   Purchase


xxx

In second method the purchase return is charged to a separate account i.e. purchase return account. The purchase return account is credit and related account is debited. This method is more suitable for controlling the purchase return.

Date
Particular
Ledger Folio
Dr.
Cr.
01-01-2017
Cash/Bank

 xxx

01-01-2017
   Purchase Return


xxx

 

Journal Entry for Cash Purchase Return


Journal entry for cash purchase return may be recorded by debiting the cash and crediting the purchase return.

Date
Particular
Ledger Folio
Dr.
Cr.
01-01-2017
Cash

 xxx

01-01-2017
   Purchase Return


xxx


Journal Entry for Credit Purchase Return

Journal entry for credit purchase return may be recorded by crediting the purchase return account and debiting the creditor to whom goods are returned. A sample entry is shown

Date
Particular
Ledger Folio
Dr.
Cr.
01-03-2015
Creditor’ account

 xxx

01-03-2015
   Purchase Return


xxx




No comments:

Post a Comment

Picture # 1