Purchase Return
Purchase Return Book Template is a ready-to-use template in Excel, Google Sheets, and OpenOffice that helps you to easily manage and record purchase return transactions.
Table of Contents
Return Outward Book is a subsidiary book of accounts that records the goods returned to our suppliers. It is also called return outward book.
Usually, when poor quality, inaccurate quantity, untimely delivery goods are received, we return those goods to the suppliers. Purchases returns or returns outwards are a normal part of the business.
You need to post the Purchase Return entries on daily basis to an individual’s account. Post these entries to the debit side of the supplier’s account in the creditor’s ledger. This helps the creditor’s account to stay up to date.
The main purpose of the return outward book is to record the goods return transactions for purchases made on credit.
A company returns goods because:
Thus, the buyer issues a debit note for the goods returned. Every entry in this book is made based on debit notes issued by us to suppliers.
Debit Note is a document that debits the account of the supplier along with purchase returns. Additionally, the debit notes mean goods return invoices that contain the details such as quantity, product details, reasons for return, etc.
Therefore, the supplier’s account is debited in our books of account. The supplier credits our account in his books of accounts.
Furthermore, regular maintaining of purchase return records helps us to avoid discrepancies of creditor’s accounts. The amount of Accounts Payable decreases whenever a purchase return takes place.
Return of goods is recording in books of accounts with the following journal entries:
| Particulars | Amount |
|---|---|
| Creditors A/C | Debit |
| To Purchase Return A/C | Credit |
We have created a Return Outward Book Template for easy accounting. You can customize it according to your needs as and when required.
Excel Google Sheets Open Office Calc
Click here to Download All Accounting Excel Templates for ₹299.
Apart from that, you can also download other accounting templates like Cash Flow Statement, Accounts Payable Ledger, and Accounts Receivable Statement.
Note: To edit and customize the Google Sheet, save the file on your Google Drive by using the “Make a Copy” option from the File menu.
Let’s discuss the contents of this template in detail.
Return Outward Book Template contains two sections as mentioned below: Heading Section and Data Input Section.
Enter Company/Business Name in the first row. Cells A1 to D1. Merge these cells.
Enter heading of Purchases Return book in the second row. Cells A2 to D2. Merge these cells.
The third row consists of subheadings for data input. These include date, particulars, debit note number, and amounts. See the image below:
Row5 to Row 17 is the data input section. In this area, you need to enter the date return, the name of the supplier along with product details, debit note number, and the amount.
Merge Cell A18 to C18. This cell displays the subheading of the total. Cell D18 contains the total amount of Purchase return. The formula applied here is =SUM(D4:D21).
We thank our readers for liking, sharing, and following us on different social media platforms, especially Facebook.
If you have any queries or questions, share them in the comments below and I will be more than happy to help you.
Usually, the purchase return is a time consuming and costly process. Thus, companies maintain a purchase return account. This account displays the number of returns all in one place. Purchases Returns is a general ledger account. Moreover, it has a credit balance that offsets the debit balance of the Purchases account.
A company returns the goods to the supplier along with a debit note to inform the seller about the return. The purchase return is a debit to creditors and a debit to the buyer. Thus, it decreases the accounts payable amount by the number of purchase returns. The accountant credits the same amount to purchases returns and allowances. In accounting purchase return and allowances is a contra‐expense account.
Goods purchased and related to the core business operations can only be recorded in purchase returns. Thus, goods which a business procures for resale can only be recorded. You cannot record the other type of goods in the purchase return.
To simplify the process, we have created a simple and easy UK VAT Taxable Turnover…
Every business has to register for VAT with HM Revenue and Customs if their VAT…
We have created the UK VAT Dual Currency Invoice excel template with predefined formulas that…
We have created a simple and easy UK VAT Purchase Register Excel Template with predefined…
We have created a simple and easy UK VAT Sales Register Excel Template with predefined…
We have created a ready to use UK VAT Progress Billing Invoice template in excel…