Page 84 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Kannan & Co. Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
` `
2003 By Purchases A/c 55,000
July 5
Balan & Co. Account

Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
` `
2003 By Purchases A/c 80,000
July 10
Note: July 6th transaction is a cash transaction and July 20th transaction ispurchase of an asset, so
both will not be recorded in the purchases book.

Task Enter the following transactions in the Purchases Book and post the same in the
relevant ledger accounts.
2001 `

Aug. 1 Bought goods from S 1,500
Aug. 4 Bought goods from N 1,000
Aug. 8 Bought goods from A 500

8.3 Purchase Return Book

This is a book of goods returned to the supplier which are out of credit purchases.

The return of goods out of the credit purchase is due to non-confirmation with the specifi cation
mentioned in the order.
Pro forma of the Purchase Returns Book
Date Name of Ledger Debit Note No Details Amount `
the Supplier Folio

The purchase returns book consists of various components, viz:
Name of the supplier: To whom the goods/raw material purchased, were returned.
Ledger folio: It is the number of the page where the journal entry is posted.
Debit Note: Whenever goods are returned to the supplier, a letter which is known as the debit
note is also sent along with returned goods. The purpose of this note is to inform the supplier
about this deduction or debit given to his account. This note contains the following particulars
such as:
1. Name and address of the supplier
2. Description of the goods returned
3. Rate and total value

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