Purchase returns journal

A purchase returns journal (also known as returns outwards journal/purchase debits daybook) is a prime entry book or a daybook which is used to record purchase returns. In other words, it is the journal which is used to record the goods which are returned to the suppliers. The source document which is used as an evidence in recording transactions into purchase returns journal is the Debit note.

Reasons for purchase returns

 * Damages
 * Expiration of products/outdated
 * Different brands
 * Out of the order
 * My foundation one missing

Double entry for purchase returns without VAT value

 * Creditors a/c Debit (Account payable) - suppliers $600
 * Purchase returns a/c Credit - value $600

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