Entry for Purchase Returns
by Jamshaid
(Lahore)
Pakistani man with flag
Q: What is the entry for when the purchases are returned?
A:It is the opposite of the entry for when you purchased something.
When you purchase goods you record (assuming you pay for goods on credit, not cash on hand):
DR Inventory/Purchases
CR Creditor
So when you return a purchase, you record:
DR Creditor
CR Inventory/Purchases