Question

______records the details of goods returned by the business organization to the supplier(s).

• A. Sales Return Book
• B. Purchase returns books
• C. Journal proper
• D. All of the above

Answer 1

Answer: (B)

Purchase returns books

When the goods purchased on credit are returned to the supplier, these are recorded in the Purchase return book. Sometimes, goods purchased can be defective or of low quality, etc. and hence, need to be returned.

A separate book is maintained for the purchase return and these are not deducted from the purchases in the Purchase book. Also, Purchase return is recorded at the net amount on the invoice.