Question

Return of goods purchased on credit to the suppliers are only recorded in the Return inward Book.

• A. True
• B. False

Answer 1

The correct option is B False

Return of goods, purchased on credit is recorded under Purchase Return Book or return outward book. Purchase book shows a debit balance, so purchase return book will show credit balance. While returning the goods buyer sent a "debit note" to the seller. The debit note contains the quantity of returned goods and reason of returning goods.