Purchases Return (Journal) Book.

  The purchases return journal, also known as the purchases returns book, is a type of accounting book used to record goods returned to suppliers by a company. This book is used to keep track of all returns made by the company to its suppliers, and it helps to maintain an accurate record of the company's purchases.

The purchases return journal typically includes the following information:

1. Date of the transaction
2. Name and address of the supplier
3. Description of the goods returned
4. Quantity of the goods returned
5. Unit price of the goods returned
6. Total amount of the goods returned
7. Reason for the return

Each transaction is recorded in the purchases return journal as a separate entry, with a unique reference number assigned to each entry. The entries are usually recorded in chronological order.

When goods are returned to a supplier, the company will issue a credit note to the supplier, which is then used to adjust the accounts payable balance. The purchases return journal is used to record these transactions and to ensure that the accounts payable balance is accurately maintained.

At the end of each accounting period, the total of the purchases return journal is posted to the general ledger as a credit to the accounts payable account and a debit to the purchases return account. This ensures that the company's accounts are accurate and up-to-date.