Question

Subsidiary book in which return of goods purchased on credit is recorded ____________.

• A. Sales book
• B. Purchase book
• C. Sales return book
• D. Purchase return book

Answer 1

Answer: (D)

Purchase return book

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. The original copy of debit not is sent to the supplier for making necessary entries in his book and on the basis of duplicate copy entries are made in Purchase return book.