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.
What is a Purchase Return Book?
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.
Purpose of Purchase Return Book
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:
- EIther the goods are defective.
- Goods might have been damaged during the transit.
- Quantities differ against the amount mentioned in the invoice.
- Late deliveries.
- The quality difference from the agreed samples or specifications.
- Goods aren’t according to the agreement.
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.
What are Debit Notes?
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.
Journal Entries of Purchase Return
Return of goods is recording in books of accounts with the following journal entries:
|To Purchase Return A/C||Credit|
Purchase Return Book Template (Excel, Google Sheet, OpenOffice)
We have created a Return Outward Book Template for easy accounting. You can customize it according to your needs as and when required.
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.
Contents of Purchase Return Book Template
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.
Data Input Section
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).
Purchase Return Book Templates With Tax
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Frequently Asked Questions
Why is the purchase return credited?
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.
Is the purchase return an expense or revenue?
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.
Which types of goods we can record in purchase return records?
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.