Purchase returns journal

Reasons for purchase returns

• Damages
• Expiration of products/outdated
• Different brands
• Out of the order
• Delays in receipts

  Structure of a purchase returns journal

Structure without a VAT">Value-added tax">VAT column

Double entry for purchase returns without VAT value

• Creditors a/c Debit - suppliers $600
• Purchase returns a/c Credit - value $600

  Structure with a VAT">Value-added tax">VAT column

Double entry for purchase returns with a VAT value

• Creditors a/c Debit - total value $ 650
• Purchase returns a/c Credit - value $600
• VAT a/c Credit - VAT $50