Question

Return of goods purchased on credit to the suppliers will be entered in _________ journal.

• A. Purchase return
• B. Sales return
• C. Purchase and sales return
• D. Goods purchase

Answer 1

The correct option is A Purchase return

Return of goods purchased on credit to the supplier is recorded in the Purchase return journal. Sometimes goods purchased are returned to the supplier for various reasons such as goods are not of the required quality, or are defective, etc. For every return, a debit note is prepared , the original one is sent to the supplier for making necessary entries in his book and on the basis of duplicate copy of debit note entry is recorded in purchase return journal.