Purchase Return Book

Learn how goods returned to suppliers are recorded systematically

📘 What is a Purchase Return Book?

A Purchase Return Book is a subsidiary book used to record goods returned to suppliers that were previously purchased on credit.

It is also known as the Returns Outward Book because goods are returned outward from the business to the supplier.

📘 Why is a Purchase Return Book Used?

When goods purchased on credit are returned to the supplier, recording each return separately in the Journal would be inconvenient.

Therefore, all such transactions are recorded systematically in the Purchase Return Book.

📘 Transactions Recorded

The Purchase Return Book records only the following type of transaction:

• Return of goods purchased on credit to suppliers.
• Goods returned because of defects or poor quality.
• Goods returned because they are not according to order.
• Excess goods returned to the supplier.

📘 Simple Example

Suppose a business purchased goods worth ₹10,000 from ABC Traders on credit.

Later, goods worth ₹2,000 were found defective and were returned to ABC Traders.

This return of ₹2,000 will be recorded in the Purchase Return Book.

⭐ Important Point

The Purchase Return Book records credit returns of goods only.

If goods purchased for cash are returned, the transaction is generally recorded in the appropriate Cash Book, not in the Purchase Return Book.

📘 Source Document

When goods are returned to a supplier, a Debit Note is generally prepared by the buyer.

The Debit Note serves as evidence of the goods returned and provides the details required for recording the transaction.

📘 Quick Summary

• Purchase Return Book is also called Returns Outward Book.
• It records goods returned to suppliers.
• It records credit purchases returned.
• Defective or unwanted goods may be returned to the supplier.
• The usual supporting document is a Debit Note.