Entry for Purchase Returns

by Jamshaid
(Lahore)

Pakistani man with flag

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

Comments for Entry for Purchase Returns

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purchase return acc
by: haseeb.

then where is purchase return account? Don't you have to open a purchase return account?

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