A debit note for 20,000 issued to Mr. Z for goods returned by us is to be accounted for in ______________.

Bills receivable book

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General journal

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Purchases return book

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Purchase book

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Solution

The correct option is A Purchases return book
A supplier when an order is received, this may be due to poor quality, inaccurate quantity, untimely delivery or other reasons.
Purchase returns are also called returns outward and an appropriate purchase returns/returns outward book is maintained.

All returns are primarily recorded in the purchase returns book unless the returns are not that frequent, in which case they are recorded in the journal.

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Similar questions

Q. A debit note issued to a creditor for goods returned by us is to be recorded in the __________.

Q. Rectify the following errors by passing Journal entries:
(i) A sum of ₹ 470 received from Ganga was posted to her debit as ₹ 740.
(ii) A debit balance of ₹ 550 in the personal account of Mr. John was undercast.
(iii) Bills Receivable from Brown for ₹ 3,000 posted to the credit of Bills Payable Account and credited to Brown’s Account.
(iv) Goods returned by Mridul ₹ 225 have been entered in the Returns Outward Book.

Q. Journal entry for transfer of Purchase return is -
Purchase return A/c Dr.
To Trading A/c

Q. Give rectifying entries for the following:
(i) ₹ 5,400 received from Mr. A was posted to the debit of his account.
(ii) The total of Sales Return Book overcasted by ₹ 800.
(iii) ₹ 2,740 paid for repairs to motor car was debited to Motor Car Account as ₹ 1,740.
(iv) Returned goods to Shyam ₹ 1,500 were passed through Returns Inward Book.

When a buyer returns goods to the seller, he sends a _______ as intimation to the seller of the amount and quantity being returned and requesting the return of money. Whereas when a Seller receives goods (returned) from the buyer, he prepares and sends a _______ as intimation to the buyer showing that the money for the related goods is being returned in the form of a credit note.

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