Purchases Returns Journal Format
The Purchases Returns Journal is a special journal in the Books of Prime Entry that records all returns of goods to suppliers arising from credit purchases. It is used when a business returns damaged, wrongly delivered or unsatisfactory goods, supported by the Credit Note received from the supplier. The total of this journal is transferred to the credit side of the Purchases Returns Account in the ledger.
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Blank format
| Date | Particulars | Credit Note No. | Folio | Amount (RM) |
|---|---|---|---|---|
| xx | xx | xx | xx | XX |
| xx | xx | xx | xx | XX |
| xx | Transferred to Purchases Returns Account (Credit) | XX |
Write the heading "Purchases Returns Journal" at the top, then set out the columns Date, Particulars, Credit Note No., Folio and Amount (RM). Record the supplier's name in the Particulars column and total the Amount column at period-end before posting to the ledger.
Parts of the format
- Journal heading
- State "Purchases Returns Journal" at the top so the type of book of prime entry is clearly identified.
- Date column
- Records the date goods are returned to the supplier in chronological order.
- Particulars column
- Records the name of the supplier to whom the goods are returned.
- Credit Note No. column
- Records the number of the Credit Note received from the supplier as the source document of the transaction.
- Folio column
- Shows the ledger page reference to which the related entry is posted.
- Amount column and transfer
- Records the value of each return; the grand total is transferred to the credit side of the Purchases Returns Account in the ledger.
Filled example
Cahaya Stationery returned defective goods to its suppliers in May 2024: RM350 to Kertas Murni Enterprise (5 May, Credit Note K012), RM480 to Sari Maju Suppliers (14 May, Credit Note K015) and RM270 to Kertas Murni Enterprise (22 May, Credit Note K021).
| Date | Particulars | Credit Note No. | Folio | Amount (RM) |
|---|---|---|---|---|
| 2024 May 5 | Kertas Murni Enterprise | K012 | 350 | |
| May 14 | Sari Maju Suppliers | K015 | 480 | |
| May 22 | Kertas Murni Enterprise | K021 | 270 | |
| May 31 | Transferred to Purchases Returns Account (Credit) | 1,100 |
Common layout errors
Related chapters and procedures
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