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
|
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