Purchase return day book is also called as purchase return book or purchase return journal or purchase return register. All purchase return vouchers are recorded in purchase return day book.  Cash received in case of material returned against cash purchases, will be entered in cash book. The Purchase return day book contains the following columns:-

  1. Date of entry
  2. Delivery challan number
  3. Supplier’s credit note number and date
  4. Debit note number of business firm if issued
  5. Supplier’s name and address
  6. Name of items returned
  7. Quantity
  8. Rate per unit
  9. Amount
  10. Trade discount
  11. Excise duty if applicable
  12. Sales tax if applicable
  13. Total amount
  14. Ledger folio.

The pages of Purchase return day book are always serially numbered. All above mentioned columns are self explanatory except ledger folio. Regarding the folio when the amount of purchase return is posted to individual account of suppliers then the ledger folio account is filled up. The total of purchase return book may be done on daily basis or weekly basis or fortnightly basis or monthly basis according to the size of transactions or requirement of the management. The totals of purchase returns, excise, sales tax, trade discount are posted in respective accounts into ledger.

The columns of the purchase return day book can be increased or reduced according to the information required by the business firm.

How to Enter the Purchase Returns in Purchase Return Day Book

Illustration – 4

Illustration:

Prepare the required vouchers from the following transactions and enter the same in Purchase Return Day Book of M/s XYZ Limited:-

 

Date Our Debit Note No. Particulars Amount(In Rs.)
05.04.12 01 Goods returned to M/s Supple Enterprises against their invoice number 125 dated 01.04.12Local Purchase @ 5% Taxable Rs. 3000/=Local Sales Tax @ 5%              Rs.150/=

3150/=

14.04.12 04 Goods returned to M/s Jay Associates  against their invoice number 445 dated 11.04.12Central Purchases Against C Form Rs. 8000/=CST @ 2% Rs.160/=

8160/=

26.04.12 08 Goods returned to M/s Modern Traders against their invoice number 1263 dated 20.04.12Local Purchase @ 5% Taxable    Rs. 5000/=Local Sales Tax @ 5%                 Rs.250/=

5250/=

Solution:

First of all we shall prepare the vouchers for above transactions as follows:

Purchase Return Voucher

Date: 05.04.12

M/s Supple Enterprises Dr. Rs.3150/=

To Local Purchases 5 % Taxable Account Rs.3000/=

To Local Sales Tax @ 5% Rs.150/=

(Being goods returned to M/s Supple Enterprises against their invoice number 125 Dated 01.04.12 as per our debit note number 01 enclosed)

Purchase Return Voucher

Date: 14.04.12

M/s Jay Associates Dr. Rs.8160/=

To Central Purchase Against C Forms Account Rs.8000/=

To Local Sales Tax @ 2% Rs.160/=

(Being goods returned to M/s Jay Associates against their invoice number 445 Dated 11.04.12 as per our debit note number 02 enclosed)

Purchase Return Voucher

Date: 26.04.12

M/s Modern Traders Dr. Rs.5250/=

To Local Purchases 5 % Taxable Account Rs.5000/=

To Local Sales Tax @ 5% Rs.250/=

(Being goods returned to M/s Supple Enterprises against their invoice number 1263 Dated 20.04.12 as per our debit note number 03 enclosed)

Now, these vouchers shall be entered in purchase day return book as under:

 

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