Purchase returns day book
The purchases returns day book records returns of goods previously bought on credit, usually supported by supplier credit notes. The supplier credit note provides evidence of the reduction in the amount owed. Post the individual credit to the supplier account and the totals to the relevant control, returns and tax accounts. Reconcile the account after the posting. A return reduces purchases and the supplier balance; it is not a new sale.
Worked example
A supplier credit note for $50, ignoring tax, debits trade payables $50 and credits purchases returns $50. The amount owed falls by $50 and the purchases-returns credit total increases by $50.
Common mistake
It does not record every cash refund or the original purchase again.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
